There are 4 people in the market and 5 potential outcomes as shown in the table below:

a) Using pairwise comparisons (i.e. comparing only 2 outcomes at a time), which allocations are Pareto improvements over other allocations?

b) Which allocations are efficient? Explain.

Outcomes Person 1 Person 2 Person 3 Person 4 $125 $150 $75 $100 $99 $99 $99 $200 $125 $125 $125 $100 $100 $100 $100 $200 $150 $150 $100 $125