Definition:Pareto Efficiency

Definition

Let $n \in \N_{>0}$ be a non-zero natural number.

Let $X \subseteq \R^n$ be a set.

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Then $x \in X$ is Pareto efficient if and only if there exists no $y \in X \setminus \set x$ for which $x_i \le y_i$ for all $i \in \set {1, \ldots, n}$.

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Also known as

An element of a set which is Pareto efficient can also be referred to as Pareto maximal.

Also see

• Results about Pareto efficiency can be found here.

Source of Name

This entry was named for Vilfredo Federico Damaso Pareto.

Sources

• 1994: Martin J. Osborne and Ariel Rubinstein: A Course in Game Theory ... (previous) ... (next): Chapter $1$ Introduction: $1.7$: Terminology and Notation