In the social sciences, refers to the effectiveness with which a social benefit reaches its intended beneficiaries. When most of the cost of a particular social good is absorbed by intermediaries, such as scalpers and profiteers, distributional efficiency is low.
The state-owned auditorium hands out a fixed number of free tickets to students to promote the arts, but nearly all of them sell the tickets to scalpers for the money. It's very poor distributional efficiency.
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