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
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 (a) CA =100,CB =0. (b) CB = 100, CA = 100. (c) CA =67,CB =33. (d) CB =50,CA =50
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