# Tag Info

• 8,476
Accepted

### In modern economics, what are the least restrictive conditions shown to theoretically achieve Pareto Efficiency?

Well, when considering the minimal conditions necessary for an allocation to be Pareto optimal we must go to the primitives. First, we need the fact that all agents have rational preferences. What ...
• 1,568
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### Finding Pareto Optimality

To be a Pareto optimum, there must not exist another feasible allocation that makes every agent at least as well off and one or more agents strictly better off. So, let us consider the options here. ...
• 2,911
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### Is the Convex Combination of Two Pareto Optimal Allocations Also Pareto Optimal?

Here $$\not\exists\;x_i^\star\; s.t.\; u_i(\alpha x_i)\geq u_i(\alpha x_i^\star)\;\forall i\;\text{and}\;u_i((1-\alpha)\hat{x}_i)\geq u_i((1-\alpha)x_i^\star)$$ \implies\not\exists\;x_i^\star\;s.t.\...
• 29.5k
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### Why do externalities lead to a Pareto-inefficient outcome?

If you allow side payments then the issue you identify goes away in a Coase sense. The citizens being polluted could pay for production to be reduced by one unit. This amount would have to be ...
• 4,765

• 12.3k
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### Walrasian Equilibrium intuition given prices and some initial allocation

The "trick" of this question is that the fact that agents do not want to trade at the given prices does not mean the allocation is Pareto. The only thing you know is that if there is an allocation ...
• 4,188

### What's the opposite of a Pareto improvement called?

The strict logic opposite of course is simply any change where at least one person is worse off but not sure we need a name for that. The conceptual opposite to Pareto improvement can as you say be a ...
• 186