Map of Ailinglapalap Island for The higher total indicates that a reallocation can be made to make both better off than with the regulation. For instance, if the Talker is allowed to use the phone, yet is required to pay his seatmate $150, a Pareto improvement is made. The Reader only does $250 worth of work, but plus $150 brings her to the $400 she could have made without the talking. The Talker earns $500 less the $150 payment, leaving $350 which is more than the $50 she would have if legally restrained from talking on the cell phone. As seen in the above example, some Pareto improvements seem awkward since we do not usually see cash payments made on the train, and many Pareto improvements are left undone. A competitive equilibrium in a perfect market will achieve the Pareto optimum, but there are cases of market breakdown where the outcome is sub-optimal. Information asymmetry can cause a market breakdown. Map of Ailinglapalap Island 2016.