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.
References in periodicals archive ?
22) For market competition to generate Pareto efficiency, a number of restrictive conditions known as the Pareto conditions must be in place.
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.
One attribute economists often look for in outcomes is Pareto efficiency.
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.
153) Although there is no distinction to be made between Kaldor-Hicks and Pareto efficiency in a Coase-theorem world of zero transaction costs--a point that Calabresi later recognized--the same cannot be said for the real world of positive transaction costs.
The other concepts he analyses in detail include game theory, competitive equilibriums and their efficiency, Pareto efficiency, and relation of economics with other disciplines.
There is also an operational device for achieving Pareto efficiency (when no more improvements are possible): the voluntary transaction.
The Pareto efficiency principle is effectively used in this case as the ruling elite is invariably found serving the cause of this five percent wealthy minority.
Among specific topics of the 58 chapters are substitution and income effects, monopolistic competition, the logistic growth curve, pareto efficiency, the trade theory diagram, non-neutrality of money, and the Lorentz curve.
Buckley's analysis is wedded to the notion of Pareto efficiency of the arrangement under the Global Factory (Buckley 2010, 2011) though, on my reading, compared to the earliest statements of internalisation the argument in favour of Pareto efficiency is somewhat circumspect and even half-hearted.