Re: ISI PEA 2015 discussion

Posted by amalgamateking on May 11, 2015; 6:34am
URL: http://discussion-forum.276.s1.nabble.com/ISI-PEA-2015-discussion-tp7596744p7596813.html

Why would the answer not change if u is less than 1?

Take the following value of u=1/2. If he cuts the cake into a part like (1/3, 2/3) where the first is for himself the  his total utility is (1/3)+[(1/2)*(2/3)] = 2/3. This is greater than 1/2 (which A got earlier). Thus optimal cutting may change even when u is less than 1