Re: Jnu - pareto optimality question.

Posted by akanksha on May 12, 2014; 10:37am
URL: http://discussion-forum.276.s1.nabble.com/Jnu-pareto-optimality-question-tp7589339p7589391.html

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 ?