Paretoepätehokkuus

Paretoepätehokkuus describes a state where resources are allocated in such a way that it is impossible to make any one individual better off without making at least one other individual worse off. This concept is a fundamental principle in economics, particularly in welfare economics and the study of market efficiency. A Pareto efficient outcome is one where no further Pareto improvements can be made.

In contrast, a situation is Pareto inefficient if there exists a potential change that could benefit at least one person without harming anyone else. This means that resources are not being utilized in the most optimal way possible. For example, if there is food available but some people are starving while others have more than they need, and the surplus food could be redistributed to alleviate hunger without taking away from those who have plenty, the situation is Pareto inefficient.

Market failures, such as externalities and imperfect information, often lead to Pareto inefficient outcomes. In these cases, the free market does not achieve an efficient allocation of resources. Government intervention, such as taxation, subsidies, or regulation, may be employed to correct these inefficiencies and move towards a Pareto efficient state, although the definition itself does not prescribe specific remedies. The pursuit of Pareto efficiency is a normative goal, aiming to maximize overall societal well-being through efficient resource distribution.