[Musik] hello my name ist B Schipp Asso Professor economics University California Davis today will about par efficiency par efficiency normative criter to judge allocations in order defineitum will switch powerp inuce Pareto efficiencyfredo Pareto Italian Economist lived in 19th century 1828 1923 he was also statistician an engineer pretty famous guy and he was the successor to Val in lanousconom also in later EFF Definition par improvement par improvement par improvement follows allocation can parocation ocation ationation never condition no okay so conditionquocationation okay so hier ist der definition of par efficiency allocation is par efficient no par improvementation findocation inition App appocates people need individuals Bob t PR App erenocation and manys I can allocates can allocate ob let first allocate as follows will the Apple Bob okay the question is allocation Paro effent okay now in order to check allation par we have to find figure out we can find par improvement okay ist oneocation could okayation Bob better woricocation h pareff could find in allocationocationationation chocolate B ksob okay so chocolate B h h Bob tasocate chocolate bar Kids one could allocate is could chocolate happationoc can find par Check allocations manyocations can find one that make somebody better making what we could do could Bob something we can take something from n ocp [Musik] ocation better somebody worse [Musik] okay EFF fair [Musik] joc [Musik] W Bob choces p take chocolate some any reocation make make worse okay so allocation is also Paret efficient actually many allocations Paret efficient and May so lesson hier par efficiency do pin down uniquely and allocation may be many allocations par in example part of chocolate R couldob so wased could made some better ation nobody wor definitionitionationation judge yes okay soid is all for today thank you and see you bye bye FE W