0
$\begingroup$

For what values $x$, $y$ the profile $(D,L)$ is Pareto optimal?

\begin{array}{c|ccc} & L & R \\ \hline U & x,5 & x+2,y \\ D& 1,-1 & x,0 \\ \end{array}

Is correct $x<1$ ?

I suppose this because $D$ should not be weakly dominated.

And $y<5$ for the same argument.

Is these values enough to answer that $(D,L)$ is Pareto optimal?

Thanks!

$\endgroup$
  • $\begingroup$ $(x,y) \in \{(a,b) \mid a<-5, ~ a + b \leq - 2\}$ $\endgroup$ – clueless May 20 '19 at 14:09
  • $\begingroup$ clueless. Could you explain me a little? Thank you. $\endgroup$ – Franciscolli May 20 '19 at 20:43

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.