Questions tagged [resource-allocation]

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A fair system for regulating allocation of scarce resources

Say there is a water shortage on a particular day and you want to minimize the damage, which you define as the number of people that cannot fulfill their basic needs such as hygiene, and having enough ...
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4 votes
1 answer
335 views

Proving Pareto-efficiency with MRS

Given three people with the same utility function: $$ u_A(x_1,x_2)=u_B(x_1,x_2)=u_C(x_1,x_2)=\sqrt{x_1x_2} $$ Prove that the following allocation is Pareto efficient: $$ x_A=(2,2),\: x_B=(3,3),\: x_C=(...
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1 vote
1 answer
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Deriving factor allocation of production function

I am trying to solve an allocation problem for a nested CES production function with three factors. The production function we posit is: $$ F(K, \mathbf L, \mathbf C) = [\alpha K^\rho + \sum_{i\not\in ...
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0 votes
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How do different groups of hunter-gatherers decide which group gets to use which land and resources?

I have seen literature about how hunter-gatherer groups allocate common resources within groups. But I wonder how "common" resources are allocated between groups, i.e. which group gets to ...
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  • 761
7 votes
2 answers
175 views

Applications of Optimal Transport in Economics

The 1975 Nobel Prize winner in Economics was Kantorovich who reformulated the optimal transportation theory of Monge and applied it to optimal resource allocation. The Wasserstein distance is central ...
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1 vote
1 answer
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The ability of markets and prices to direct resources to higher valued uses: Is this a short run or a long run attribute?

I came across the following quote in a lecture: "In economics, we often talk about the power of markets and prices to direct resources to higher valued uses." - Mike Munger Is this ability ...
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  • 399
1 vote
1 answer
110 views

What is the latest thinking on the economic calculation problem? [closed]

Eric Posner and Glen Weyl write in the epilogue of Radical Markets (2018) that they “remain confident that for at least a few generations markets – Radical Markets, that is – will remain the best ...
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-3 votes
1 answer
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What is the distributional impact of monopoly pricing on consumers?

Hi there, In the example above, a monopolist sets the price for ice-creams at Pm. The instructor then states that the rectangle B is transferred to the monopolist. What is meant by the rectangle ...
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1 vote
1 answer
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Is there still allocative efficiency when a subsidy is placed on a good?

An answer schedule for a practice exam I am doing states that when a subsidy is placed on a a good by the government, there is a loss of allocative efficiency. I have also learnt from this video that ...
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-1 votes
1 answer
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Is it detrimental if self-interest is not acknowledged in resource allocation situations?

Please note: I am doing a literature survey/review, and I would like references to published work. I contend that if we are dealing with a resource allocation mechanism that allocates scarce ...
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