Re: DSE 2012 Q27 ( PARETO EFFICIENCY)
Posted by juhi on Jun 24, 2013; 7:11am
URL: http://discussion-forum.276.s1.nabble.com/DSE-2012-Q27-PARETO-EFFICIENCY-tp7582826p7582830.html
hey mauli just check utility of both the agents for following allocations;
Agent 1 Agent 2
(1.5,0)=1.5 (1.5,3)=11.25
1.5,1.5=3 1.5,1.5=4.5
1.5,3=4.5 1.5,0=2.25
2,1=3 1,2=5
1,2 =3 2,1=5
2,2=4 1,1=2
3,0=3 0,3=9
these are the possible ones..check utility..and you will get the pareto efficient allocations
clearly allocation 1 is pareto efficient and allocation 2 is not