Paretoparannuksia

Paretoparannuksia, also known as Pareto improvements or Pareto-optimal changes, are a concept in economics and game theory that describes a change to a system that makes at least one individual or entity better off without making anyone else worse off. This definition implies that no resources are wasted in the transition to the new state. If a Pareto improvement is possible, then the current state is not considered Pareto efficient.

The core idea is that if a change can benefit someone without harming anyone, it is a desirable improvement. This concept is often used to evaluate the efficiency of resource allocation and policy decisions. A state where no further Pareto improvements can be made is called Pareto efficient or Pareto optimal. In such a state, any attempt to make one person better off would necessarily make at least one other person worse off.

It is important to note that Pareto improvements do not necessarily lead to an equitable distribution of resources. A state can be Pareto efficient while still having significant inequalities. The concept focuses solely on efficiency, not fairness or justice. The existence of Pareto improvements can be used to justify interventions that move towards a more efficient outcome, even if the distribution of benefits is not perfectly even.