An allocation is Pareto efficient if there is no other allocation in which some other individual is better off and no individual is worse off. Also seen as the situation where any Walrasian general equilibrium allocation is Pareto-efficient outcome.
Notice, how difficult it is to imagine that any redistribution would make both parties better off. Is this an explanation of the world that appears to a certain group?
Is this a set of value judgments, interpreted as a mathematical model?
The Economic Problem
What is Keynes referring to when he talks about solving the "Economic Problem"? Is this something we have already done?
Great Abundance and Variety
Markets have achieved great strides. How are they best serving us?
How have markets failed us?