What Nozick understands by compensation is anything that makes A indifferent (that is, A has to be just as good in his own judgement before the transgression and after the compensation) provided that A has taken reasonable precautions to avoid the situation.  He argues that compensation isn't enough, because some people will violate these boundaries, for example, without revealing his identity.  Therefore, some extra cost has to be imposed on those who violate someone else's rights. (For the sake of simplicity this discussion on deterrence is summarized in another section of this article).
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