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Just a guy trying to make sense of it all. Saturday, May 17, 2014. Uses and Abuses of Pareto Optimization in Economics. Simon Wren-Lewis posts on Pareto optimization here. Given an initial allocation of goods among a set of individuals, a change to a different allocation that makes at least one individual better off without making any other individual worse off is called a Pareto improvement. Like I said, this one might be a straw man, but e.