我的想法
中文名：帕累托最优, we could also use Pareto Efficiency to replace.
It is a way that when allocating the resources, when do not decrease everyone’s utility, increase someones’ (or only one’s) utility
When there is no solution that can be better when this agent does better and nobody does worse, so we could call it as Pareto Optimality, it is always connected with the Game Theory.
It is possible that one “game” has more than one Pareto solution.
The analyze process
An example in the table:
| 1,3 | 2,2 |
|---|---|
| 3,1 | 1,2 |
In this case, we first exam first box: 1,3
- We find that no other choice would increase one’s utility while doesn’t decrease others’, so it is the Pareto Solution
Same for 2,2 and 3,1
However, when we look at “1,2”, we find that the second box, 2,2 could do so, so the fourth box isn’t the Pareto Solution.
Pareto Solution is not stable
Think about the case in the Game Theory , the player in the game is always trying to maximize his own utility, so it is clear that Pareto Solution is not stable.
Critical Thinking
- Notice that Efficiency Equity. Pareto Optimality just cares about whether we could improve the overall utility without loss of someone’s (Pareto Improvement), we do not care about the equity of the allocation. For example, we could let one owns all the resources in the society, it is usually Pareto Optimality. (See Jungle Equilibrium).
Reference
- 怎样理解帕累托最优和纳什均衡及其关系？ - 知乎 https://www.zhihu.com/question/22821519