Pareto efficiency, or Pareto optimality, is a concept in economics named after Vilfredo Pareto. The term is applied in engineering, game theory, and the social sciences. Pareto used the concept in studies of economic efficiency and income distribution.
Pareto claimed that a change from one allocation to another could make one individual better off without making any other worse off. This is referred to as a Pareto improvement. The allocation is then called Pareto efficient or Pareto optimal.
The 80/20 Efficiency concept is his reasoning. For example 20% of your sales force may contribute 80% of your sales.
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