Pareto optimality

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Pareto optimality

a theoretical condition of the economy in which the distribution of economic welfare cannot be improved for any one individual without reducing the welfare of one or more other individuals. Thus a ‘Pareto improvement’ occurs when a reallocation of resources renders one or more persons better off. In any situation where more than one optimum is possible, Pareto optimality cannot be established.
Collins Dictionary of Sociology, 3rd ed. © HarperCollins Publishers 2000
References in periodicals archive ?
Moreover, it utterly disregards distributional outcomes (which Pareto efficiency does not cover).
In order to determine the efficiency of the individual strategies, the authors then accounted for an economic concept known as Pareto efficiency. According to this concept, a strategy reaches maximum efficiency when no further enhancements can be made without adversely altering one variable.
In the line of this mutual benefit as appeared in the study of Anderson (2002) that marketers will usually treat their customers as a strategic partner for mutually benefitting the sales outcome in term of sales volume, sales growth, sales profit is known as Pareto efficiency. The role of the salesperson is to identify his or her customer's need in serving the end-user consumer and maintain a relationship with customers to achieve an optimum return.
Fredriksson, "Necessary and sufficient conditions for Pareto efficiency in robust multiobjective optimization," European Journal of Operational Research, vol.
[T]he market is essentially a staged competition, designed to promote Pareto efficiency, and in cases where the explicit rules governing the competition are insufficient to secure the class of favored outcomes, economic actors should respect the spirit of these rules and refrain from pursuing strategies that run contrary to the point of the competition, (p.
In economic terminology, the term "efficiency" refers to the idea of Pareto optimality, or, alternatively, to other concepts (such as Kaldhor-Hicks efficiency and social welfare maximization) commonly used in policy analyses to overcome the restricted practicability of the Pareto efficiency criterion.
Notions of fairness and efficiency coincide with utility equality and Pareto efficiency if individual preferences are represented by Euclidean loss functions.
In the sixth section, we calibrate our model to a European Economic Area nonlife insurer average portfolio and analyze the impact of Solvency II on Pareto efficiency. We conclude in the seventh section.
The preceding implies that in settings where shocks, such as the sudden revaluation of real estate, can occur, one can differentiate between the Pareto efficiency of a trading arrangement after, and before, the realization of the shock.
In advancing their assertion, Murphy and Nagel are doing little more than reflecting the unlimited domain of contemporary welfare economics, wherein the province of state action is governed by nothing more than some economist's formulation of the necessary conditions for Pareto efficiency.
School building B, for example, is located on the efficient frontier and is thus the Pareto efficiency unit.