Paretodominanciának

Paretodominanciának, often translated as Pareto dominance, is a fundamental concept in decision theory and economics, particularly in the context of Pareto efficiency. A state or outcome is said to be Pareto dominated if there exists another state or outcome where at least one individual is better off and no individual is worse off. In simpler terms, if you can improve someone's situation without harming anyone else, the original situation is Pareto dominated.

The core idea is to identify situations where improvements are possible without creating any losers. This concept is closely related to Pareto efficiency, which describes a state where no further Pareto improvements can be made. If a situation is Pareto efficient, it means that any attempt to make one person better off will inevitably make at least one other person worse off.

Paretodominanciának is a normative concept, meaning it suggests what *should* be considered an improvement. However, it does not provide a way to compare states where some individuals gain and others lose, even if the overall "gain" is larger. It is a relatively weak criterion for evaluating outcomes because many different Pareto efficient states can exist, and the concept itself doesn't offer a method for choosing among them. Despite this limitation, it serves as a useful starting point for analyzing economic policies and social choices, helping to identify clearly suboptimal outcomes.

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