* " Pareto Index Estimation Under Moderate Right Censoring ", Jan Beirlant, Armelle Guillou, Scandinavian Actuarial Journal, volume 2 ( 2001 ), pages 111 – 125.

* A Prediction Error Criterion for Choosing the Lower Quantile in Pareto Index Estimation, by Debbie J. Dupuis and Maria-Pia Victoria-Feser

* " Pareto index " in various languages, from the International Statistical Institute's glossary of statistical terms.

The Pareto principle ( also known as the 80 – 20 rule, the law of the vital few, and the principle of factor sparsity ) states that, for many events, roughly 80 % of the effects come from 20 % of the causes .< ref name =" NYT ">.

Thus, moving from A to D enables you to make one person better off without making anyone else worse off ( Pareto improvement ).

Moving to point B from point A, however, is not a Pareto improvement, as less butter is produced.

Likewise, moving to point C from point A is not Pareto efficient, as fewer guns are produced.

It is important to note, however, that a change from an inefficient allocation to an efficient one is not necessarily a Pareto improvement.

The relationship between the " Discount Yield " and the Rate of Return on other financial assets is usually discussed in such economic and financial theories involving the inter-relation between various Market Prices, and the achievement of Pareto Optimality through the operations in the Capitalistic Price Mechanism ,< Ref Name =" Economics_Discount "/> as well as in the discussion of the " Efficient ( Financial ) Market Hypothesis ".< Ref Name =" Finance_Discount "/>< Ref Name =" Economics_Competition "> Competition from other firms who offer other Financial Assets that promise the Market Rate of Return forces the person who is asking for a delay in payment to offer a " Discount Yield " that is the same as the Market Rate of Return .</ ref > The person delaying the payment of the current Liability is essentially compensating the person to whom he / she owes money for the lost revenue that could be earned from an investment during the time period covered by the delay in payment.

This definition of efficiency differs from that of Pareto efficiency, and forms the basis of the theoretical argument against the existence of market failures.

Colloquial uses of the term " market failure " reflect the notion of a market " failing " to provide some desired attribute different from efficiency – for instance, high levels of inequality can be considered a " market failure ", yet are not Pareto inefficient, and so would not be considered a market failure by mainstream

Under Kaldor – Hicks efficiency, an outcome is considered more efficient if a Pareto optimal outcome can be reached by arranging sufficient compensation from those that are made better off to those that are made worse off so that all would end up no worse off than before.

Rawls justifies the Difference Principle on the basis that, since Fair Equality of Opportunity has lexical priority, the Just choice from Pareto optimal scenarios which could occur would be that benefiting the worst-off rather than the best-off.

Essentially, the " first-best " neoclassical analysis fails to properly account for various kinds of general-equilibrium feedback relationships that result from intrinsic Pareto imperfections.

It is observed that the Kaldorian position, if the compensations actually take place, is no different from the Pareto improvement criterion for enhancing social welfare.

The Pareto principle ( also known as the " 80-20 rule ," states that, for many events, roughly 80 % of the effects come from 20 % of the causes.

Welfare economics typically takes individual preferences as given and stipulates a welfare improvement in Pareto efficiency terms from social state A to social state B if at least one person prefers B and no one else opposes it.

All the points on this locus are Pareto efficient allocations, meaning that from any one of these points there is no reallocation that could make one of the people more satisfied with his or her allocation without making the other person less satisfied.

The contract curve is the subset of the Pareto efficient points that could be reached by trading from the people's initial holdings of the two goods.

This optimization problem states that the goods are to be allocated between the two people in such a way that no more than the available amount of each good is allocated to the two people combined, and the first person's utility is to be as high as possible while making the second person's utility no lower than at the initial allocation ( so the second person would not refuse to trade from the initial allocation to the point found ); this formulation of the problem finds a Pareto efficient point on the lens, as far as possible from person 1's origin.

The Pareto method, derived from the Pareto principle, is to cycle count inventory by percentage of inventory value ( cost multiplied by usage for period ).

Games of trust are designed in a way that their Nash equilibrium differ from Pareto optimum so that no player alone can maximise his own utility by altering his selfish strategy without cooperation while cooperating partners can benefit.

Games of trust are designed in a way that their Nash equilibrium differ from Pareto optimum so that no player alone can maximise his own utility by altering his selfish strategy without cooperation while cooperating partners can benefit.

* " Wealth Condensation in Pareto Macroeconomies ", Z. Burda, D. Johnston, J. Jurkiewicz, M. Kamiński, M. A.

* " Generalized Pareto Fit to the Society of Actuaries Large Claims Database ", A. Cebrián, M. Denuit and Ph.

* " The Pareto Law and the Distribution of Income ", G. Findlay Shirras, The Economic Journal, volume 45, number 180, pages 663 – 681, December 1935.

Another route undertaken was initiated by Émile Durkheim, studying " social facts ", and Vilfredo Pareto, opening metatheoretical ideas and individual theories.

The theory of indifference curves was developed by Francis Ysidro Edgeworth, who explained in his book " Mathematical Psychics: an Essay on the Application of Mathematics to the Moral Sciences ”, 1881, the mathematics needed for its drawing ; later on, Vilfredo Pareto was the first author to actually draw these curves, in his book " Manual of Political Economy ", 1906 ; and others in the first part of the 20th century.

This analysis follows the lead of the neoclassical school, and relies on the notion of Pareto efficiency – and specifically considers market failures absent considerations of the " public interest ", or equity, citing definitional concerns.

Edgeworth's original two-axis depiction was developed into the now familiar box diagram by Pareto in his book " Manual of Political Economy ", 1906 and was popularized in a later exposition by Bowley.

The liberal paradox is a logical paradox advanced by Amartya Sen, building on the work of Kenneth Arrow and his impossibility theorem, which showed that within a system of menu-independent social choice, it is impossible to have both a commitment to " Minimal Liberty ", which was defined as the ability to order tuples of choices, and Pareto optimality.

In a 2006 working paper titled " Goodbye Pareto Principle, Hello Long Tail ", Erik Brynjolfsson, Yu ( Jeffrey ) Hu, and Duncan Simester found that, by greatly lowering search costs, information technology in general and Internet markets in particular could substantially increase the collective share of hard-to-find products, thereby creating a longer tail in the distribution of sales.

For instance, Kaoru Ishikawa defined the flowchart as one of the seven basic tools of quality control, next to the histogram, Pareto chart, check sheet, control chart, cause-and-effect diagram, and the scatter diagram.

The tools used in these extra activities include: Ishikawa diagrams, designed experiments and Pareto charts.

* 1986 – Paula Pareto, Argentine judoka

* 1848 – Vilfredo Pareto, Italian economist and sociologist ( d. 1923 )

* Vilfredo Pareto, Cours d ' économie politique professé à l ' université de Lausanne, 3 volumes, 1896 – 7.

To the right is the long tail, and to the left are the few that dominate ( also known as the Pareto principle | 80 – 20 rule ).

* July 15 – Vilfredo Pareto, Italian economist ( d. 1923 )

The term is named after Vilfredo Pareto ( 1848 – 1923 ), an Italian economist who used the concept in his studies of economic efficiency and income distribution.

In the absence of perfect information or complete markets, outcomes will generically be Pareto inefficient, per the Greenwald – Stiglitz theorem.

* Vilfredo Pareto ( 1848 – 1923 ), Italian sociologist, economist and philosopher

Pareto improvements are a small subset of Kaldor – Hicks improvements.

Kaldor – Hicks efficiency, named for Nicholas Kaldor and John Hicks, also known as Kaldor – Hicks criterion, is a measure of economic efficiency that captures some of the intuitive appeal of Pareto efficiency, but has less stringent criteria and is hence applicable to more circumstances.

Using Kaldor – Hicks efficiency, an outcome is more efficient if those that are made better off could in theory compensate those that are made worse off, so that a Pareto improving outcome results.

While every Pareto improvement is a Kaldor – Hicks improvement, most Kaldor – Hicks improvements are not Pareto improvements.

This is because, as the graph above illustrates, the set of Pareto improvements is a proper subset of Kaldor – Hicks improvement, which also reflects the greater flexibility and applicability of the Kaldor – Hicks criteria relative to the Pareto criteria.