Pareto improvement
E573600
A Pareto improvement is a change in allocation that makes at least one individual better off without making anyone else worse off.
All labels observed (2)
| Label | Occurrences |
|---|---|
| Pareto dominance | 1 |
| Pareto improvement canonical | 1 |
How this entity was disambiguated
This entity first appeared as the object of triple T6164515 — resolving that mention is where its identity was fixed. The disambiguator weighed these candidate entities and picked the highlighted one (or “None”, minting a new entity). This is how homonymy is resolved: the same surface form can point to different entities.
NED1
Entity disambiguation (via context triple)
gpt-5-mini-2025-08-07
Target entity: Pareto improvement Context triple: [welfare economics, appliesCriterion, Pareto improvement]
-
A.
Pareto efficiency
Pareto efficiency is an economic concept describing an allocation of resources where no individual can be made better off without making someone else worse off.
-
B.
Hicks–Kaldor compensation criterion
The Hicks–Kaldor compensation criterion is an economic efficiency test stating that a policy change is desirable if those who gain could in principle compensate those who lose and still be better off, regardless of whether compensation actually occurs.
-
C.
second fundamental theorem of welfare economics
The second fundamental theorem of welfare economics states that, under certain ideal conditions, any Pareto efficient allocation of resources can be achieved as a competitive market equilibrium given an appropriate redistribution of initial endowments.
-
D.
First Welfare Theorem
The First Welfare Theorem is a fundamental result in economics stating that, under certain ideal conditions, competitive market equilibria are Pareto efficient.
-
E.
Coase theorem
The Coase theorem is an economic theory stating that if property rights are well-defined and transaction costs are negligible, private bargaining will lead to an efficient allocation of resources regardless of the initial assignment of rights.
- F. None of above. chosen
- G. Unsure - the case is ambiguous/there is not enough information to decide.
NED2
Entity disambiguation (via description)
gpt-5-mini-2025-08-07
Target entity: Pareto improvement Target entity description: A Pareto improvement is a change in allocation that makes at least one individual better off without making anyone else worse off.
-
A.
Pareto efficiency
Pareto efficiency is an economic concept describing an allocation of resources where no individual can be made better off without making someone else worse off.
-
B.
Hicks–Kaldor compensation criterion
The Hicks–Kaldor compensation criterion is an economic efficiency test stating that a policy change is desirable if those who gain could in principle compensate those who lose and still be better off, regardless of whether compensation actually occurs.
-
C.
second fundamental theorem of welfare economics
The second fundamental theorem of welfare economics states that, under certain ideal conditions, any Pareto efficient allocation of resources can be achieved as a competitive market equilibrium given an appropriate redistribution of initial endowments.
-
D.
First Welfare Theorem
The First Welfare Theorem is a fundamental result in economics stating that, under certain ideal conditions, competitive market equilibria are Pareto efficient.
-
E.
Coase theorem
The Coase theorem is an economic theory stating that if property rights are well-defined and transaction costs are negligible, private bargaining will lead to an efficient allocation of resources regardless of the initial assignment of rights.
- F. None of above. chosen
Statements (46)
| Predicate | Object |
|---|---|
| instanceOf | economic concept ⓘ |
| appliesTo |
allocations of goods
ⓘ
allocations of outcomes ⓘ allocations of resources ⓘ |
| assumes |
ordinal utility representation
ⓘ
well-defined individual preferences ⓘ |
| canBe |
strict
ⓘ
weak ⓘ |
| category | efficiency in welfare economics ⓘ |
| characterizedBy |
Pareto dominance
ⓘ
linked to:
Pareto improvement
|
| compatibleWith | multiple Pareto-efficient allocations ⓘ |
| contrastedWith |
Kaldor–Hicks improvement
ⓘ
linked to:
Hicks–Kaldor compensation criterion
Pareto efficiency ⓘ |
| criterionType | efficiency criterion ⓘ |
| definition | a change in allocation that makes at least one individual better off without making anyone else worse off ⓘ |
| doesNotAddress |
equity
ⓘ
fairness ⓘ |
| doesNotRequire | interpersonal utility comparisons ⓘ |
| expressedIn | partial order over allocations ⓘ |
| field |
economics
ⓘ
welfare economics ⓘ |
| formalizedIn | social choice theory ⓘ |
| hasLimitation |
may be impossible when all allocations are Pareto-efficient
ⓘ
may be rare in real-world policy changes ⓘ |
| implies |
at least one individual is made better off
ⓘ
movement toward Pareto efficiency ⓘ no individual is made worse off ⓘ potential gains from trade ⓘ |
| isStepToward | Pareto optimal allocation ⓘ |
| logicalProperty | transitivity of Pareto dominance under standard assumptions ⓘ |
| namedAfter | Vilfredo Pareto ⓘ |
| notSufficientFor | uniquely determining a Pareto-efficient allocation ⓘ |
| occursWhen | new allocation Pareto-dominates old allocation ⓘ |
| relatedConcept |
Pareto frontier
ⓘ
linked to:
Pareto efficiency
social welfare function ⓘ |
| relatedTo |
Pareto efficiency
ⓘ
Pareto optimality ⓘ
linked to:
Pareto efficiency
|
| requires |
at least one strict preference improvement
ⓘ
no strict preference worsening ⓘ |
| usedAs |
benchmark for policy reforms
ⓘ
criterion for mutually beneficial trades ⓘ |
| usedIn |
cost–benefit analysis
ⓘ
game theory ⓘ general equilibrium theory ⓘ policy evaluation ⓘ welfare analysis ⓘ |
How these facts were elicited
The pipeline generated the facts above by prompting gpt-5.1 with this entity's name + description and the instruction below.
Instruction
You are a knowledge base construction expert. Given a subject entity and a description of it, return factual statements that you know for the subject as a JSON list of dictionaries(triples), where keys must be "subject", "predicate" and "object". The number of facts may be very high, between 25 to 50 or more, for very popular subjects. For less popular subjects, the number of facts can be very low, like 5 or 10. # Requirements - If you don't know the subject at all, return an empty list. - If the subject is not a named entity, return an empty list. - Include at least one triple where predicate is "instanceOf". - Do not get too wordy. - Separate several objects into multiple triples with one object.
Input
Subject: Pareto improvement Description of subject: A Pareto improvement is a change in allocation that makes at least one individual better off without making anyone else worse off.
Referenced by (2)
Full triples — surface form annotated when it differs from this entity's canonical label.
linked to: Pareto improvement