Re: DSE 2014

Posted by happy on Jul 01, 2017; 6:22am
URL: http://discussion-forum.276.s1.nabble.com/DSE-2014-tp7606541p7606735.html

A is correct
B is incorrect   without any doubt

Now consider
A perf : e > a > c > b > d
B : d > c > b > a > e

Then pareto optimal allocation w.r.t. S are "a, c, d, e"
and pareto optimal allocation w.r.t. T are "a, c, d" (Amit Sir example is not correct , because in that example a is not pareto optimal w.r.t. set S)

According to these prefrences antecedent of C statement are true but the consequent is false.

So statemtement C is false.

Statement D is true because
- a is pareto optimal allocation .So, there exist at least one individual who prefer a over b

- because a is only pareto optiomal allocation.So, there should not exist any individual who prefer b over a otherwise b will be another pareto optimal allocation.

Hence a is pareto superior to b.