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Allocation vs Misallocation - What's the difference?

allocation | misallocation |

As nouns the difference between allocation and misallocation

is that allocation is the process or procedure for allocating things, especially money or other resources while misallocation is an improper or unwise allocation, especially of money.

allocation

English

Noun

(en noun)
  • The process or procedure for allocating things, especially money or other resources.
    • The allocation of new permits is on a first-come, first-served basis.

    Derived terms

    * allocational

    Anagrams

    * ----

    misallocation

    English

    Noun

    (en noun)
  • An improper or unwise allocation, especially of money
  • *{{quote-news, 2009, January 6, Jeffrey Goldfarb And Martin Hutchinson, Rebuilding the S.E.C., New York Times citation
    • , passage=When the bulk of a bank's assets can be traded, relying on historical acquisition costs distorts reality and leads to capital misallocation . }}