Accounting Software Glossary	Accounting Software from Lakeview
The accounting software glossary is a glossary of words and phrases related to accounting software and is provided entirely as-is and without warranty. Please feel free to make use of the definitions of accounting software terms contained herein, provided you quote your source or, if used online, provide a link back to the accounting software glossary.

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Definition of Pareto optimum

Pareto efficiency is a concept of efficiency named after Vilfredo Pareto, the Italian economist who used the concept in his studies of economic efficiency and income distribution. A new allocation of resources is considered to be a Pareto improvement if at least one party is better of, and none of the parties are worse off. The strength of this concept is that no party may dispute that the "whole" is better off. Its weakness is that a scenario where many individuals are much better off but one individual is slightly worse off, is not considered a pareto improvement.