<p>the process of moving from one point to another i.e. reallocation makes one person better off while making another person worse off. for instance, moving from the lower part of the contract curve to a higher part makes Octavio better off as Octavio's indifference curve goes further away from the origin. However, the process makes Abby worse off as Abby's indifference curve moves closer to the origin.</p>

<p>There exist multiple points of pareto efficient outcomes which are stable, i.e. no more trading occurs.</p>

CC BY-SA 3.0
2017-11-15T13:47:59.107Z
2017-11-15T13:47:59.107Z
advantage
<p>It says on <a href="https://en.wikipedia.org/wiki/Contract_curve" rel="nofollow noreferrer">Wikipedia</a>: "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." But aren't different points on the contract curve different "reallocations"? Some of the points have better utility for both players than others. Isn't that a contradiction or did I miss something?</p>

CC BY-SA 3.0
2017-11-15T12:36:40.950Z
"Some of them have better utility" Better utility for whom?
Giskard
CC BY-SA 3.0
2017-11-15T17:53:44.057Z
Sorry, it seems that I understand the sentence incorrectly.
Aqqqq
<microeconomics><pareto-efficiency>
A question regarding definition of Pareto efficiency
Aqqqq
# A question regarding definition of Pareto efficiency

(Asked by: username_0 on 2017-11-15)

It says on [Wikipedia](https://en.wikipedia.org/wiki/Contract_curve): "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." But aren't different points on the contract curve different "reallocations"? Some of the points have better utility for both players than others. Isn't that a contradiction or did I miss something?

**Tags:** microeconomics, pareto-efficiency
> **Comments:**
> **username_1**: "Some of them have better utility" Better utility for whom?  
> **username_0**: Sorry, it seems that I understand the sentence incorrectly.  

---

## 1 answers

### Answer by username_2 on 2017-11-15. Score: 1

the process of moving from one point to another i.e. reallocation makes one person better off while making another person worse off. for instance, moving from the lower part of the contract curve to a higher part makes Octavio better off as Octavio's indifference curve goes further away from the origin. However, the process makes Abby worse off as Abby's indifference curve moves closer to the origin.

There exist multiple points of pareto efficient outcomes which are stable, i.e. no more trading occurs.


---

