Pareto improvement

A Pareto improvement is a change to a situation which makes at least one individual better off without making any other individual worse off. It is named after Vilfredo Pareto, an Italian economist who developed the concept of Pareto efficiency. Pareto improvements are important in economics because they represent a way to make a situation better without creating any losers. Examples of Pareto improvements include reducing pollution, increasing access to education, and improving public transportation.