Named after Italian sociologist and economist Vilfredo Pareto (1848-1923), Pareto optimality is a situation which exists when economic resources and output have been allocated in such a way that no-one can be made better off without sacrificing the well-being of at least one person.
Also see: social welfare function, compensation principle, cost-benefit analysis, scitovsky paradox
V Pareto, Manuale d’economia politico (Milan, 1906)
Pareto optimal (comparative more Pareto optimal, superlative most Pareto optimal)
- (game theory, economics) Describing a situation in which the profit of one party cannot be increased without reducing the profit of another.
- (game theory) Describing a strategy that cannot be made to perform better against one opposing strategy without performing less well against another.