Can you always make everyone happier without hurting anyone?
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Pareto efficiency
Can you always make everyone happier without hurting anyone?
Imagine you're at a dinner party with a limited pizza. Everyone wants a slice, but there's not enough for everyone to get what they want.
Pareto efficiency is like finding a pizza slice distribution where no one can get a better slice without someone else getting a smaller one. The technical term is a Pareto improvement.
Example
If Alice gets a larger slice, Bob has to get a smaller slice for the same total pizza.
Remember this
Pareto efficiency means you can't improve someone's situation without hurting someone else.
Text adapted from Wikipedia, licensed under CC BY-SA 4.0.
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