Skip to main content

Pareto Improvement

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 Improvement
 

Pareto Improvement

A Pareto Improvement is a reallocation of goods in a market, which makes at least one individual better off without making anybody else worse off.

(Dwayne Benjamin, PPG 1002H)

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

Any allocation of goods in which there remain unrealized Pareto improvements is said to be "Pareto inefficient". Conversely, an allocation in which no further Pareto improvements are possible is said to be "Pareto efficient". In an open, competitive market in which all individuals are able to buy and sell goods freely, a Pareto efficient outcome will be achieved.

     

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