Italian philosopher who defined the concept of the optimal economic state, the holy grail of economic welfare and the benefit-cost analysis. The Patero optimal state is where no one can be make better off without making someone worse off. This state would theoretically be achieved when there is a maximisation of net social benefits. The measurement of net social gain is still problematic with many unanswered questions.
A Parento improvement includes potential, that is, a change which could make at least one other person better off and no-one worse off is a potential Parento improvement. Parento’s work is important for Copyright Economics and intellectual property.
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