Pareto efficiency
![A production-possibility frontier is an example of a Pareto Efficient
Frontier. The connected line of red points represents Pareto optimal choices of production before the addition of point N.](/Images/godic/202502/01/PareoEfficientFrontier1024x10241225.png")
![Example of a Pareto frontier. The boxed points represent feasible choices, and smaller values are preferred to larger ones. Point C is not on the Pareto Frontier because it is dominated by both point A and point B. Points A and B are not strictly dominated by any other, and hence do lie on the frontier.](/Images/godic/202502/01/Front_pareto.svg1225.png")
Pareto efficiency, or Pareto optimality, is a state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off. The term is named after Vilfredo Pareto (1848–1923), an Italian engineer and economist who used the concept in his studies of economic efficiency and income distribution. The concept has applications in academic fields such as economics, engineering, and the life sciences.