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en-wikipedia-org-7018		Pareto efficiency - Wikipedia			.html	text/html	5631	1067	64	Pareto originally used the word "optimal" for the concept, but as it describes a situation where a limited number of people will be made better off under finite resources, and it does not take equality or social well-being into account, it is in effect a definition of and better captured by "efficiency".[2] Besides economics, the notion of Pareto efficiency has been applied to the selection of alternatives in engineering and biology. This result was first demonstrated mathematically by economists Kenneth Arrow and Gérard Debreu.[5][citation needed] However, the result only holds under the assumptions of the theorem: markets exist for all possible goods, there are no externalities; markets are perfectly competitive; and market participants have perfect information. A significant aspect of the Pareto frontier in economics is that, at a Pareto-efficient allocation, the marginal rate of substitution is the same for all consumers.[16] A formal statement can be derived by considering a system with m consumers and n goods, and a utility function of each consumer as 	./cache/en-wikipedia-org-7018.html	./txt/en-wikipedia-org-7018.txt