Re: dse entrance 2012 question doubt

Posted by Amit Goyal on Mar 19, 2013; 12:51pm
URL: http://discussion-forum.276.s1.nabble.com/dse-entrance-2012-question-doubt-tp7579873p7579885.html

Please read the definition of efficiency carefully and you would know. This is what efficiency means:
We say that a feasible allocation A is NOT efficient if there exist some feasible allocation B that can improve the welfare of at least one of the individuals of the society without reducing the welfare of the others i.e. u_i(B) > u_i(A) for some i and u_i(B) >= u_i(A) for all i.
We say that a feasible allocation A is efficient if there is no way to improve on it i.e. it is NOT NOT efficient.