Re: Strong vs Weak Pareto Efficiency - May 23

Posted by Amit Goyal on May 24, 2012; 6:49am
URL: http://discussion-forum.276.s1.nabble.com/Strong-vs-Weak-Pareto-Efficiency-May-23-tp7573642p7574685.html

Thats right Vasudha. Well done.
Let F denotes set of all feasible allocations (set of all allocations in the edgeworth box)
Let x(i) denotes i's consumption of good x, and y(i) denotes i's consumption of good y
Set of weakly efficient allocations is given by
{((x(1),y(1)),(x(2),y(2))) ∈ F| y(1) = 2} U
{((x(1),y(1)),(x(2),y(2))) ∈ F| y(2) = 2} U
{((x(1),y(1)),(x(2),y(2))) ∈ F| max (x(1),y(1)) = 1} U
{((x(1),y(1)),(x(2),y(2))) ∈ F| max (x(2),y(2)) = 1}