> The point is that modern micro doesn't rest on some kind of aggregation of preferences to do a group utility maximization exercise. It acknowledges that the right framework is mutually beneficial exchanges (that other crap gets smuggled back in later).

I like how you state that: the other crap! A lot of that other crap is antithetical to the basic premises of the idea Pareto and the Austrians are proposing as theory. They, the other economists, seem to be able to twist a perfectly logical and reasonable theory into a nightmare of unreality. 


Rothbardian_fanatic

econ

Vilfredo Pareto: A Return to the Libertarian Roots of Elite Theory

Pareto Efficiency is applied to resource allocations, so it can abstract away from things like search and information costs. 

The point is that modern micro doesn't rest on some kind of aggregation of preferences to do a group utility maximization exercise. It acknowledges that the right framework is mutually beneficial exchanges (that other crap gets smuggled back in later).