Map of Rowville for The latter theory states that while some individuals are born into higher social strata, these strata rotate as today’s elite is overthrown by lower classes who become the new elite. Pareto died in 1923 in Geneva. Pareto optimality is an important concept in welfare economics since it provides an objective criterion. If a Pareto improvement does not harm anyone, then there should be no opposition. The competitive equilibrium in a perfect market is one example of a Pareto optimal solution. If there were Pareto improvements to be made, then that would imply gains to trade, and the economy would move to the Pareto optimal equilibrium. Consider a simplified example of a Pareto improvement. Map of Rowville 2016.