Allocatief

Allocatief is a term used in Dutch economics to denote allocative efficiency—the state in which resources are allocated to produce the mix of goods and services that best matches consumer preferences. In microeconomic theory, allocative efficiency occurs when the marginal benefit to society from an additional unit of a good equals its marginal cost of production. In a simple model of perfect competition, this condition is reflected by prices equaling marginal costs across markets (P = MC), so that the given resources are used where they yield the highest social value.

Allocative efficiency is often contrasted with productive efficiency, which focuses on producing goods at minimum average cost. Both notions are components of welfare economics and relate to Pareto efficiency, where no one can be made better off without making someone else worse off.

In practice, achieving allocative efficiency can be hindered by market failures such as externalities, public goods, information asymmetries, and imperfect competition. Distributional considerations and dynamic changes over time can also affect whether the economy reaches an allocatively efficient outcome. When external costs or benefits are present, or when markets do not clear, the allocation of resources may deviate from the socially optimal mix of goods.

The term allocatief is primarily used in Dutch-language literature; the English equivalent is allocative or allocative efficiency. Related concepts include marginal cost, marginal benefit, and Pareto efficiency.