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Suppose that Alice and Bob want to divide 4 goods: a watch, a ring, a necklace and a pair of earrings.Here are the values they
Suppose that Alice and Bob want to divide 4 goods: a watch, a ring, a necklace and a pair of earrings.Here are the values they put on the goods.
Watch | Ring | Necklace | Earrings | |
Alice | 200 | 600 | 100 | 100 |
Bob | 150 | 500 | 200 | 150 |
We cannot cut the goods. (a) Which distributions of goods are Pareto-dominated? ( Look for pairs of goods i; j such that if Alice has i and Bob has j; one agent would be strictly better off and the other at least as good if they traded i for j) (b) Find the distribution of the goods chosen by Spliddit (and show why). (c) Find the distribution of the goods chosen by the classical utilitarian criteria.
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