Pareto Efficiency

//Pareto Efficiency

Pareto Efficiency

“A state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off…A Pareto improvement is defined to be a change to a different allocation that makes at least one individual better off without making any other individual worse off, given a certain initial allocation of goods among a set of individuals.”

Source:
Gabriel Weinberg’s Mental Models I Find Repeatedly Useful

2018-09-24T05:51:34+00:00