pareto optimal
/pəˌreɪtoʊ ˈɒptɪməl/
a state where no one can be made better off without making another worse off
pareto optimal in a sentence
“A perfectly competitive market reaches Pareto optimality.”
Origin of pareto optimal
Named after Vilfredo Pareto, Italian economist (1848-1923)
Related Words
revealed preference
inferring preferences from observed choices
time preference
the relative valuation of present versus future consumption
expected utility
the weighted average of utilities across possible outcomes
risk aversion
preference for certainty over gambles with equal expected value
risk neutral
indifference between certain outcomes and gambles of equal expected value
sunk cost
a past cost that cannot be recovered