Pareto efficiency does not require a totally equitable distribution of wealth, which is another aspect that draws in criticism.Bhushi, K. (ed.), Farm to Fingers: The Culture and Politics of Food in Contemporary India (Cambridge: Cambridge University Press, 2018), p. 222. An economy in which a wealthy few hold the vast majority of resources can be Pareto-efficient. A simple example is the distribution of a pie among three people. The most equitable distribution would assign one third to each person. However, the assignment of, say, a half section to each of two individuals and none to the third is also Pareto-optimal despite not being equitable, because none of the recipients could be made better off without decreasing someone else's share; and there are many other such distribution examples. An example of a Pareto-inefficient distribution of the pie would be allocation of a quarter of the pie to each of the three, with the remainder discarded.Wittman, D., Economic Foundations of Law and Organization (Cambridge: Cambridge University Press, 2006), p. 18.
Pareto efficiency does not require a totally equitable distribution of wealth, which is another aspect that draws in criticism.Bhushi, K. (ed.), Farm to Fingers: The Culture and Politics of Food in Contemporary India (Cambridge: Cambridge University Press, 2018), p. 222. An economy in which a wealthy few hold the vast majority of resources can be Pareto-efficient. A simple example is the distribution of a pie among three people The most equitable distribution would assign one third to each person. However, the assignment of, say, a half section to each of two individuals and none to the third is also Pareto-optimal despite not being equitable, because none of the recipients could be made better off without decreasing someone else's share; and there are many other such distribution examples. An example of a Pareto-inefficient distribution of the pie would be allocation of a quarter of the pie to each of the three, with the remainder discarded.Wittman, D., Economic Foundations of Law and Organization (Cambridge: Cambridge University Press, 2006), p. 18.