Jnu - pareto optimality question.

[Spiti]

[Amit Goyal]

y and z are pareto efficient, x and w are not pareto efficient.
y is efficient because replacing it by any other feasible allocation such as x, w or z will necessarily make individual 2 worse off.
z is efficient because replacing it by any other feasible allocation such as x, w or y will necessarily make individual 3 worse off.
x is not efficient because replacing it by y will not make any individual worse off and will make at least one of them better off.
w is not efficient because replacing it by z will not make any individual worse off and will make at least one of them better off.

[Anjali]

Sir , in preference R1 , does parenthesis suggest that , although there is indifference between x and y , both are preferred to z and w ?

[Anakin Skywalker]

CONTENTS DELETED

The author has deleted this message.

[Anjali]

So even though x is parenthesis , we do not label it pareto as it is not given a strict priority ( position 1 ) by anyone . Is that so ?

[akanksha]

so if the question is
Q.1   Suppose we say that an allocation x is Pareto optimal if and only if there does not exist an allocation, say y, such that : every individual in the economy considers y to be at least as good as x, and at least one individual considers y to be strictly better than x. Now, consider a society of four individuals. This society has five allocations to choose from a, b, c, d and e. Individual preferences over these allocations are as follows :
     
       1st individual : a > b >c > d>e
       2st individual : b >c > d >e > a
       3st individual : c >d >e >a >b
       4st individual : d >e >a >b >c
     where a>b >c>d>e means that the 1st individual prefers allocation a over b, b over c, .... d over e.      Likewise for the preferences of other individual. Find out the Pareto optimal allocations for this society.


and we follow the same technique Sir...then the ans should be
a,b,c,d are pareto efficient and e is inefficient.
IS IT RIGHT ?

[akanksha]

@anjali
Ya i guess...since it can be repalced by y.. so it wont make anyone necessarily worse off

[Anjali]

For the question you have posted , your solution seems right akanksha

[Homer Simpson]

can someone explain this again? Like when i see R1 and look for pareto-optimality in x, how do i know how he is better off or worse off?

secondly, when i see that some swap (relative to x,yz,w) is making someone better off and aleast one person worse off, that means its pareto optimal?