Paretodominanssi

Paretodominanssi, also known as Pareto dominance, is a concept used in decision theory and economics to compare alternative options or solutions. An option A is said to Paretodominanssi option B if option A is at least as good as option B in all respects, and strictly better than option B in at least one respect. This means that no individual can be made worse off by switching from option B to option A, and at least one individual is made better off.

The concept is named after Vilfredo Pareto, an Italian economist who introduced the idea of Pareto efficiency. A situation is Pareto efficient if no further improvements can be made without making at least one individual worse off. Paretodominanssi provides a way to identify situations that are not Pareto efficient, as any option that is Paretodominanssied by another is by definition not Pareto efficient.

In practical terms, Paretodominanssi helps in decision-making by identifying clearly superior choices. If option A Paretodominanssi option B, then choosing B over A would be considered irrational from a Pareto perspective, as it would either make someone worse off or fail to make anyone better off when a better alternative exists. This principle is widely applied in areas such as resource allocation, policy analysis, and game theory to guide choices towards more optimal outcomes.