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Re:Quadratic Payments: A Primer by tossaway17 on Tuesday December 10, 2019 @11:36AM (#21753996)
Can one prove that an idealized perfectly competitive market is Pareto efficient or is this taken as a definition?
Re:Quadratic Payments: A Primer by sideshowb on Tuesday December 10, 2019 @11:42AM (#21754069)
There's a proof...

...but then again (1) nobody has ever seen an idealized perfectly competitive market; (2) it's by no means clear that an idealized perfectly competitive market even serves as a useful approximation to the ones we have; (3) efficiency (in the narrow sense defined by efficient markets) is not the goal we want to be pursuing anyway.

Re:Quadratic Payments: A Primer by QuesnayJr on Tuesday December 10, 2019 @11:47AM (#21754120)
There's a proof. The theorem is called the "First Welfare Theorem". There's also a "Second Welfare Theorem" that says that you can achieve any Pareto efficient outcome through a perfectly competitive market and lump-sum taxes.
Re:Quadratic Payments: A Primer by littlestymaar on Tuesday December 10, 2019 @12:39PM (#21754652)
IIRC Kenneth Arrow proved something around it yes.