Pareto Efficiency

• [[go]] https://en.wikipedia.org/wiki/Pareto_efficiency
  • [[quote]] Given an initial situation, a [[Pareto improvement]] is a new situation where some agents will gain, and no agents will lose.
    • A situation is called [[Pareto dominated]] if there exists a possible [[Pareto]] [[improvement]].
    • A situation is called [[Pareto optimal]] or [[Pareto efficient]] if no change could lead to improved satisfaction for some agent without some other agent losing or if there's no scope for further Pareto improvement.
    • The Pareto frontier is the set of all Pareto efficient allocations, conventionally shown graphically. It also is variously known as the Pareto front or Pareto set.
  • Using this concept for social planning is probably a bad idea.