LYCOS RETRIEVER 
Vilfredo Pareto: People
built 808 days ago
Pareto is best known for two concepts that are named after him. The first and most familiar is the concept of Pareto optimality. A Pareto-optimal allocation of resources is achieved when it is not possible to make anyone better off without making someone else worse off. The second is Pareto's law of income distribution. This law, which Pareto derived from British data on income, showed a linear relationship between each income level and the number of people who received more than that income. Pareto found similar results for Prussia, Saxony, Paris, and some Italian cities.
Source:
Pareto was ... troubled with the concept of "utility". In its common usage, utility meant the well-being of the individual or society, but Pareto realized that when people make economic decisions, they are guided by what they think is desirable for them, whether or not that corresponds to their well-being. Thus, he introduced the term "ophelimity" to replace the worn-out "utility". Preferences was what Pareto wanted to get at.
Source:
Markets are both cause and effect of Pareto Optimal situations. One of the bets made by the "market systems" people is that a market for resources can either move a system to an equilibrium use of resources, or else that the system will move to an equilibrium use of resources of its own accord, at which point a market will be necessary to allocate resources efficiently.
Source:
MORE ABOUT
People