From The Collaborative International Dictionary of English v.0.44 [gcide]:
Compensate \Com"pen*sate\ (? or ?; 277), verb (used with an object) [imp. & p. p. {Compensated}; p. pr. & vb. n. {Compensating}.] [L. compensatus, p. p. of compensare, prop., to weigh several things with one another, to balance with one another, verb intens. fr. compendere. See {Compendium}.]
1. To make equal return to; to remunerate; to recompense; to give an equivalent to; to requite suitably; as, to compensate a laborer for his work, or a merchant for his losses.
2. To be equivalent in value or effect to; to counterbalance; to make up for; to make amends for.
The length of the night and the dews thereof do compensate the heat of the day. --Bacon.
The pleasures of life do not compensate the miseries. --Prior.
Syn: To recompense; remunerate; indemnify; reward; requite; counterbalance.
From Moby Thesaurus II by Grady Ward, 1.0 [moby-thes]:
67 Moby Thesaurus words for "compensating": adversative, adverse, adversive, amendatory, antagonistic, anti, antipathetic, antithetic, antonymous, at cross-purposes, balancing, clashing, compensative, compensatory, conflicting, confronting, contradictory, contradistinct, contrapositive, contrarious, contrary, contrasted, converse, counter, counteracting, counteractive, counterbalancing, counterpoised, countervailing, dead against, discordant, discrepant, expiatory, eyeball to eyeball, hostile, inconsistent, indemnificatory, inimical, inverse, lucrative, moneymaking, obverse, offsetting, opposed, opposing, opposite, oppositional, oppositive, oppugnant, paying, penitential, perverse, profitable, recompensive, rectifying, remunerative, reparative, repaying, repugnant, retaliatory, retributive, retributory, reverse, rewardful, rewarding, satisfying, squared off
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