Skip to main content

Pareto Efficient Allocations

Go Search
Home
About
New Atlas
Atlas, A-Z
Atlas Maps
MPP/MPA Programs
Subjects
Core Topics
Illustrative Courses
Topic Encyclopedia
Concept Dictionary
Competencies
Career Tips
IGOs
Best Practices Project


 
PPGPortal > Home > Concept Dictionary > P, Q > Pareto Efficient Allocations
 

Pareto Efficient Allocations

Any allocation of goods in which no trades are possible that would make both participants in the trade better off.

(Dwayne Benjamin, PPG 1002H)

---------------------------------

The First Theorem of Welfare Economics states that in any market in which the free exchange of goods is permitted, the resulting allocation will be Pareto efficient.

     

Important Notices
© University of Toronto 2008
School of Public Policy and Governance