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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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