Re: ISI Interview

Posted by Sakshi Agarwal on Sep 20, 2017; 6:27am
URL: http://discussion-forum.276.s1.nabble.com/ISI-Interview-tp7577774p7608138.html

The answer to this question is that he should allocate 2 hrs to x1 and 8 hrs to x2 because then their utilities will be zero and this is the highest that they can achieve. Because if any other time is alloted to x1, lets say, 4, then his utility will be -2, which is less than zero. Thus, because the utility is negative of modulus, they cannot achieve a higher utility than zero. the no. of hours allocated is to them is kind of bad for the individuals.