What economic state occurs when no individual can be made better off without making at least one individual worse off?
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Pareto Efficiency
Named after Vilfredo Pareto, an allocation is Pareto efficient if it is impossible to make one person better off without making at least one person worse off. It is a central concept in welfare economics.
Also asked as:
- What term describes an allocation where it is impossible to improve one person's situation without making someone else worse off?