Allocational efficiency (also known as allocative efficiency) is a characteristic of an efficient market in which capital is allocated in a way that is most beneficial to the parties involved. Allocational efficiency represents an optimal distribution of goods and services to consumers in an economy. It also represents an optimal distribution of financial capital to firms or projects among investors—Read more at Investopedia. Kenton, Will. “Allocational Efficiency.” 9 December 2019.