Hi,
If you make reservations for your virtual machine's that are equal to the amount of RAM assigned to them, swapping and page sharing does not occur. You can over commit pretty heavily if you are comfortable with poorer performance. If you do not set reservations, ESX host creates a .vswp file equal to the difference between the amount of physical memory assigned to the virtual machine and the reservation it has. By default, memory reservations are set to 0. If you have a virtual machine with 2GB of memory without a reservation, it creates a 2GB .vswp file when it is powered on. The virtual machine starts using the .vswp file if the server is out of physical RAM. If you set a 1GB reservation, it creates a 1GB .vswp file. The .vswp files are what allows for memory overcommitment.
Regards