Question

Prove that the Egalitarian solution violates the Pareto Optimality axiom.

Answer 1

Pareto optimality is a condition of allocation of resources from which it is impossible to reallocate resources such that at least one person is made better off without making any one else worse off.

Egalitarian solution of allocation of resources is based on equality concept. That is to say income should be equally distributed among the members of society.

suppose, for egalitarian solution, income is taken from high income group and distributed among low income group, low income people are getting better off but high income people are getting worse off.

Thus egalitarian solution violates the pareto optimality axiom.