It says on Wikipedia: "All the points on this locus are Pareto efficient allocations, meaning that from any one of these points there is no reallocation that could make one of the people more satisfied with his or her allocation without making the other person less satisfied." But aren't different points on the contract curve different "reallocations"? Some of the points have better utility for both players than others. Isn't that a contradiction or did I miss something?

  • $\begingroup$ "Some of them have better utility" Better utility for whom? $\endgroup$
    – Giskard
    Nov 15, 2017 at 12:36
  • $\begingroup$ Sorry, it seems that I understand the sentence incorrectly. $\endgroup$
    – Aqqqq
    Nov 15, 2017 at 17:53

1 Answer 1


the process of moving from one point to another i.e. reallocation makes one person better off while making another person worse off. for instance, moving from the lower part of the contract curve to a higher part makes Octavio better off as Octavio's indifference curve goes further away from the origin. However, the process makes Abby worse off as Abby's indifference curve moves closer to the origin.

There exist multiple points of pareto efficient outcomes which are stable, i.e. no more trading occurs.


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