Marshallian

A comparable measure of loss is the compensating variation, which depends on Hicksian demand instead of Marshallian demand.

Hicks vs. Marshall An important distinction should be made between Hicksian (per John Hicks ) and Marshallian (per Alfred Marshall ) deadweight loss.

If these conditions do not hold, then the Marshallian model cannot be sustained.

The major advantages of Marshallian industrial districts arise from simple propinquity of firms, which allows easier recruitment of skilled labour and rapid exchanges of commercial and technical information through informal channels.