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.
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.