Why care about Pareto Efficiency/Improvement?

Figure 1
  1. When considering the production of items, it is called “productive efficiency”.
  2. When considering people’s utility it is called “Pareto efficiency”.
  1. Market capitalism does not result in productive efficiency, only Pareto (utility)-efficiency.
  2. You should not care about Pareto (utility)-efficiency.
  3. Efficiency is not at odds with equality.

1. Market capitalism does not result in productive efficiency, only Pareto efficiency.

2. You should not care about Pareto efficiency.

3. Efficiency is not at odds with equality.

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