Re: DSE 2013 Doubts

Posted by Gayyam on Jun 25, 2014; 1:20am
URL: http://discussion-forum.276.s1.nabble.com/DSE-2013-Doubts-tp7590991p7593523.html

Hi Akshay,

For the 38th question, if I take a location in [0.2,0.7], then I can't choose any other location that increases one's utility without making the other one worse off. Isn't that Pareto optimal?

eg. at dn=0.5, da=0.3, db=0.2. At dn =(0.5+∂), da=0.3+∂, db=0.2-∂. Thus, we can't make anyone better off without reducing the other's utility.