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Suppose two people, A and B , are in love and care for the other's happiness as well as their own consumption. UA = (
Suppose two people, A and B, are in love and care for the other's happiness as well as their own consumption.
UA = (CAUB )^1/2
UB = (CBUA)^1/2
Suppose they have 100 units of consumption to distribute, they will maximize the joint happiness (UA+ UB) where
CA= 100, CB= 0.
CB= 100, CA= 100.
CA= 67, CB= 33.
CB= 50, CA= 50.
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