It seems we have agreed that open threads will continue but that they will go in the Discussion section, so here's this month's thread.

It seems we have agreed that open threads will continue but that they will go in the Discussion section, so here's this month's thread.

I don't understand your comment. There can be many Pareto optimal outcomes. For example, "Alice gives Bob a million dollars" is Pareto optimal, even though it makes Alice worse off than the other Pareto optimal outcome where everyone keeps their money.

Yes, this was a confusion on my part. You are right that starting from a Pareto-optimal state, a pure transfer results in another Pareto-optimal state.