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Samuelsons Criteria:

A way out of Gorman's  intransitivity problem  has  been proposed  by  Paul Samuelson,  popularly known  as  the  Samuelson  Criteria.  The  Samuelson criteria argues that a situation G is preferred to a situation D if all hypothetical redistributions  from  situation  G  will  achieve  utility  allocations  that are superior  to  some hypothetical  redistributions  from  situation D  and  that  no
hypothetical redistribution from  situation D will yield utility  allocations that are unattainable through any hypothetical redistributions from  situation G.  in other words,  the  utility  space  lies  everywhere above  UPFD. In production space, it  requires that PPFG  intersects the interiors of CICD  and the interior of any other CIC tangent to PPFD.  Clearly, this will often require that PPFG  lies

2350_Social Welfare Function and  the Social Optimum3.png

everywhere above PPFD  - as in Figure . Naturally, if we deal exclusively with PPFs of this type, neither Scitovsky reversals nor Gorman intransitivities arise. But  it also obviously highly restrictive as  it  rules out quite reasonable  situations . Thus, in  this sense, the  Samuelson  criterion  is  far more restrictive  than  the  Kaldor,  Hicks  or Scitovsky double criteria.

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