(Answered) In what ways may social evaluations of costs and benefits differ from those implied by market…

➤ Why do distributional and equity considerations change social valuations compared with market prices?
Distributional concerns matter because markets reflect aggregate willingness to pay, not fairness. Analysts may apply social welfare weights, poverty aversion, or progressive weighting to give greater value to benefits received by lower-income or vulnerable groups. This shifts project rankings and compensation rules relative to pure market outcomes.