3. Show that, in Case 2(b), if p1() = p2() and UD (d, ) = aUJ (d,...
Question:
3. Show that, in Case 2(b), if p1(θ) = p2(θ) and UD
(d, θ) = aUJ
(d, θ) +
b, where a > 0, then p(θ) = αpD(θ)+(1−α)pJ (θ)(0 ≤ α ≤ 1) and U
(d, θ) = UD
(d, θ) satisfy the Pareto condition.
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