Pareto efficiency is enforcing something that makes somebody better off without making anybody else worse off. Net society gains as a whole.
It's like 2 guys chasing 2 girls (a blonde and a brounette). Guy 1 only likes blondes. Guy 2 only likes brounettes.
Outcomes:
Guy 1 gets both girls. Guy 2 no girl.
Guy 2 gets both girls. Guy 1 no girl.
OR,
PARETO EFFICENT OUTCOME:
Guy 1 gets the blonde, and Guy 2 gets the brounette. Each is made better off without making the other guy worse off.
by C.Brown February 06, 2008

Free Daily Email

Type your email address below to get our free Urban Word of the Day every morning!

Emails are sent from daily@urbandictionary.com. We'll never spam you.

×