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Line 1: − + − #at least one participant can improve his own outcome while − #no other participants receives a worse outcome than he does now. − Putting it into less formal style: As long as a player can improve his outcome without hurting anybody else, the situation is not Pareto efficient. − +
Small words make a big difference ... I don't know, and I don't think, the last sentence in the introduction is correct.
In [[game theory]] and [[economics]], the concept of '''Pareto efficiency''' (or '''Pareto optimality''') is a method to judge the [[efficiency]] of a set of decisions made by the participants. It was named after [[Vilfredo Pareto]].
In [[game theory]] and [[economics]], the concept of '''Pareto efficiency''' (or '''Pareto optimality''') is a method to judge the [[efficiency]] of a set of decisions made by the participants. It was named after [[Vilfredo Pareto]].
A set of decisions "x/y" (meaning that participant A chooses "x" while participant B chooses "y") is called Pareto optimal if there is '''no''' other state in which:
A set of decisions "x/y" (meaning that participant A chooses "x" while participant B chooses "y") is called Pareto optimal if there is '''no''' other state, other participants' prior and concurrent actions remaining the same, in which at least one participant can improve his own outcome.
If a participant can improve his outcome without hurting anybody else, the new decision set '''Pareto dominates''' the old one.
If a participant can improve his outcome without harming anybody else, the new decision set '''Pareto dominates''' the old one.
==An example==
==An example==