Pareto efficiency does not apply, because it is a theoretical construct that assumes perfectly rational actors. It's useful for thinking about the market, but n

Pareto efficiency does not apply, because it is a theoretical construct that assumes perfectly rational actors. It's useful for thinking about the market, but not an actual law. (For a more humorous statement: https://www.youtube.com/watch?v=oap6_U8-HvI https://www.youtube.com/watch?v=oap6_U8-HvI)