Question

You value your economics textbook at $15. someone else values it at $30, and that person is willing to pay you $20 for your textbook. would selling your textbook to this person for $20 be pareto improvement?

Answer 1

This scenario is considered a Pareto Improvement. In neoclassical economics, a pareto improvement is an action done in the economy that does no harm in the process but helps at least one of the transacting bodies. No one will be harmed by the selling of the book and the two parties will instead be helped.