Pareto improvement
E573600
A Pareto improvement is a change in allocation that makes at least one individual better off without making anyone else worse off.
Statements (46)
| Predicate | Object |
|---|---|
| instanceOf | economic concept ⓘ |
| appliesTo |
allocations of goods
ⓘ
allocations of outcomes ⓘ allocations of resources ⓘ |
| assumes |
ordinal utility representation
ⓘ
well-defined individual preferences ⓘ |
| canBe |
strict
ⓘ
weak ⓘ |
| category | efficiency in welfare economics ⓘ |
| characterizedBy | Pareto dominance NERFINISHED ⓘ |
| compatibleWith | multiple Pareto-efficient allocations ⓘ |
| contrastedWith |
Kaldor–Hicks improvement
NERFINISHED
ⓘ
Pareto efficiency ⓘ |
| criterionType | efficiency criterion ⓘ |
| definition | a change in allocation that makes at least one individual better off without making anyone else worse off ⓘ |
| doesNotAddress |
equity
ⓘ
fairness ⓘ |
| doesNotRequire | interpersonal utility comparisons ⓘ |
| expressedIn | partial order over allocations ⓘ |
| field |
economics
ⓘ
welfare economics NERFINISHED ⓘ |
| formalizedIn | social choice theory NERFINISHED ⓘ |
| hasLimitation |
may be impossible when all allocations are Pareto-efficient
ⓘ
may be rare in real-world policy changes ⓘ |
| implies |
at least one individual is made better off
ⓘ
movement toward Pareto efficiency ⓘ no individual is made worse off ⓘ potential gains from trade ⓘ |
| isStepToward | Pareto optimal allocation ⓘ |
| logicalProperty | transitivity of Pareto dominance under standard assumptions ⓘ |
| namedAfter | Vilfredo Pareto NERFINISHED ⓘ |
| notSufficientFor | uniquely determining a Pareto-efficient allocation ⓘ |
| occursWhen | new allocation Pareto-dominates old allocation ⓘ |
| relatedConcept |
Pareto frontier
NERFINISHED
ⓘ
social welfare function ⓘ |
| relatedTo |
Pareto efficiency
ⓘ
Pareto optimality NERFINISHED ⓘ |
| requires |
at least one strict preference improvement
ⓘ
no strict preference worsening ⓘ |
| usedAs |
benchmark for policy reforms
ⓘ
criterion for mutually beneficial trades ⓘ |
| usedIn |
cost–benefit analysis
ⓘ
game theory NERFINISHED ⓘ general equilibrium theory ⓘ policy evaluation ⓘ welfare analysis ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.