Competitive equilibrium pAreto Optimal( pareto efficient) ◆ An allocation(x…x;y1…y) s Pareto efficient( optimal ) if there isn't any the other feasible allocation(x,…x;y2…y) made u()2u(x) for any i and u ()>u,(x) for some i See theCompetitive equilibrium Pareto Optimal ( Pareto efficient ) : An allocation is Pareto efficient ( optimal ) if there isn’t any the other feasible allocation , made for any i and for some i. See the fig. 1 1 ( , ; , ) I J x x y y     1 1 ( , ; , ) I J x x y y ( ) ( ) i i u u x x   ( ) ( ) i i u u x x  