Re: DSE 2013 Paper Discussion

Posted by Akshay Jain on May 22, 2014; 6:25pm
URL: http://discussion-forum.276.s1.nabble.com/DSE-2013-Paper-Discussion-tp7584703p7590446.html

34...An allocation is non enevy if an agent prefers his own allocation/endowment den that of the other's allocation endowment
consider the utility of agent A....UA(own allocation)=  4*alpha
and UA(B's allocation)= alpha+5
for non envy.....UA(own allocation)>=UA(B's allocation)
4*alpha>=alpha+5
3*alpha>=5
so alpha>=5/3

Similarly agent B prefers  his own allocation as from A allocation UB=0

so alpha=>5/3 for non envy...