Pareto optimality occurs when it’s impossible to make one party better off without making another worse off. This concept is graphically represented by the Pareto frontier, which shows the trade-offs between objectives. One solution Pareto dominates another if it outperforms or matches it in all objectives while being strictly better in at least one. Pareto efficiency finds applications in economics, politics, engineering, and operations research, where it helps optimize outcomes and make informed decisions. The concept originated with Vilfredo Pareto, who studied income distribution and economic efficiency.
