Pareto efficiency

E145374

Pareto efficiency is an economic concept describing an allocation of resources where no individual can be made better off without making someone else worse off.

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All labels observed (5)

Label Occurrences
Pareto efficiency canonical 10
Pareto optimality 2
Pareto optimum 2

Statements (47)

Predicate Object
instanceOf economic concept
efficiency concept
welfare economics concept
alsoKnownAs Pareto efficiency
surface form: Pareto optimality

Pareto efficiency
surface form: Pareto optimum
appliesTo allocations of resources
consumption bundles
distributions of goods
general equilibrium outcomes
production plans
assesses allocative efficiency
assumes given endowments
given preference profiles
contrastsWith dominated allocation
inefficient allocation
coreIdea no individual can be made better off without making at least one individual worse off
criterionType efficiency criterion
doesNotImply equality
equity
fairness
field economics
microeconomics
welfare economics
formalizedBy Pareto ordering
historicalOrigin late 19th century
isNeutralAbout distribution of utility levels
interpersonal comparisons of utility
isPropertyOf allocations
economic states
outcomes of games
limitation does not rank Pareto-efficient allocations among themselves
may select multiple possible efficient allocations
namedAfter Vilfredo Pareto
relatedConcept Hicks–Kaldor compensation criterion
surface form: Kaldor–Hicks efficiency

Pareto efficiency self-linksurface differs
surface form: Pareto frontier

Pareto improvement
First Welfare Theorem
surface form: first fundamental theorem of welfare economics

second fundamental theorem of welfare economics
social welfare function
usedAs benchmark for market outcomes
normative standard in welfare analysis
usedIn cost–benefit analysis
game theory
market design
mechanism design
public economics
resource allocation problems

How these facts were elicited

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Instruction
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# Requirements
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Input
Subject: Pareto efficiency
Description of subject: Pareto efficiency is an economic concept describing an allocation of resources where no individual can be made better off without making someone else worse off.

Referenced by (16)

Full triples — surface form annotated when it differs from this entity's canonical label.

Kalai–Smorodinsky bargaining solution characterizedBy Pareto efficiency
this entity surface form: Pareto optimality
Vilfredo Pareto knownFor Pareto efficiency
law and economics movement coreConcept Pareto efficiency
Pareto efficiency alsoKnownAs Pareto efficiency
this entity surface form: Pareto optimality
Pareto efficiency alsoKnownAs Pareto efficiency
this entity surface form: Pareto optimum
Pareto efficiency relatedConcept Pareto efficiency self-linksurface differs
this entity surface form: Pareto frontier
welfare economics usesConcept Pareto efficiency
Hicks–Kaldor compensation criterion weakerThan Pareto efficiency
this entity surface form: Pareto criterion
Pareto knownFor Pareto efficiency
subject surface form: Vilfredo Pareto
Pareto hasDerivedConcept Pareto efficiency
Pareto principle relatedConcept Pareto efficiency
Manual of Political Economy subject Pareto efficiency
Manual of Political Economy hasConcept Pareto efficiency
this entity surface form: Pareto optimum