Pareto efficiency, or Pareto optimality, is a concept in economics.
Named after Vilfredo Pareto, the term is applied in engineering, game theory, and social sciences.
Pareto used the concept in studies of economic efficiency and income distribution. He claimed that a change from one allocation to another could make one individual better off, without making another worse off. This is referred to as a Pareto improvement. The allocation is called Pareto efficient or Pareto optimal.
The 80/20 Efficiency concept. so often used in management, is his reasoning. For example, 20% of your sales force may contribute 80% of your sales.
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