Net welfare loss, also known as deadweight loss, allocative inefficiency or excess burden

In economics, a market disturbance caused by deviations from the scale of the market in equilibrium under perfect competition. As a result, the Pareto-optimal quantity is missed, namely the condition where it is not possible to make someone better off without making someone else worse off at the same time (a loss of economic efficiency that can occur when equilibrium for a good is not Pareto optimal, namely a condition where no one can be made better off by making someone worse off). Causes of net welfare loss are above all all forms of monopolistic market power, in addition to taxes, tariffs and subsidies. – See market, perfect, market failure.

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