Pareto improvement, also called Pareto improvement or Pareto optimization. The explanation is: named after the Italian economist Pareto, and based on Pareto optimal change, at least one person becomes better without making anyone worse. On the one hand, Pareto optimality refers to the state where there is no room for Pareto improvement; On the other hand, Pareto improvement is the path and method to achieve Pareto optimality. Pareto optimality is the "ideal kingdom" of efficiency.

Pareto optimality is named after the Italian economist Vivredo pareto who put forward this concept. Vivredo pareto used this concept in his research on economic efficiency and income distribution.

Extended data:

Generally speaking, when reaching Pareto optimality, the following three conditions will be met at the same time: exchange optimality: even if trading again, individuals can't get more benefits from it. At this time, for any two consumers, the marginal substitution rate of any two commodities is the same, and the utility of both consumers is maximized at the same time.

Optimal production: This economy must be on its own production possibility frontier. At this time, for any two producers who produce different products, the marginal rate of technical substitution of the two production factors that need to be invested is the same, and the output of the two producers is maximized at the same time.

Optimal product mix: the combination of products produced by an economy must reflect consumers' preferences. At this time, the marginal substitution rate between any two commodities must be the same as the marginal product conversion rate of any producer between these two commodities.

Baidu Encyclopedia-Pareto Optimization