Difference between revisions of "Pareto Optimality"
From Critiques Of Libertarianism
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[[Category:Economics 101]] | [[Category:Economics 101]] | ||
[[Category:Common Fallacies Of Economics]] | [[Category:Common Fallacies Of Economics]] | ||
| − | {{DES | des = Pareto optimality is often an illusory hope. Markets can theoretically produce Pareto-optimal results, but there are plenty of reasons why they might not. Nor do markets help us choose which Pareto Optimum we'd want of many possible optima. Pareto improvements assume many things which are not true, such as that inequality doesn't matter. They also are frequently used in bait-and-switch: lump-sum transfers to make sure everybody benefits are often conveniently forgotten. And there are other solutions (including centralized solutions) which can also produce Pareto-optimal results | show=}} | + | {{DES | des = Pareto optimality is often an illusory hope. Markets can theoretically produce Pareto-optimal results, but there are plenty of reasons why they might not. Nor do markets help us choose which Pareto Optimum we'd want of many possible optima. Pareto improvements assume many things which are not true, such as that inequality doesn't matter. They also are frequently used in bait-and-switch: lump-sum transfers to make sure everybody benefits are often conveniently forgotten. And there are other solutions (including centralized solutions and naked coercion) which can also produce Pareto-optimal results | show=}} |
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