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Imagine there are ten people stranded on an island. Each person fishes for food. One day, eight people catch one fish each, one person catches
Imagine there are ten people stranded on an island. Each person fishes for food. One day, eight people catch one fish each, one person catches no fish, and one catches two fish. The economic rule of the island is that each person keeps the fish they caught. The fish must be eaten the first day or they spoil, and no one wants to eat more than one fish. If everyone follows the economic rule of the island and keeps the fish they caught, is it Pareto optimal? Why or why not
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