Pareto optimality determines which distribution of gains governments ultimately select.

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Pareto optimality is a concept in economics that describes a situation where no individual or preference criterion can be better off without making at least one individual or preference criterion worse off. It does not determine government decisions on the distribution of gains, as those decisions often involve trade-offs and considerations beyond Pareto efficiency, such as equity, political feasibility, and other socio-economic factors.

Pareto Optimality Determines Which Distribution of Gains Governments Ultimately Select