New answers tagged

1 vote
Accepted

Finding the Pareto efficient allocations

Let $y_i$ be the contribution of agent i towards the production of $y$ $y=\sqrt{\sum y_i}$ So when $y=4$ $\Rightarrow \sum y_i=16 \Rightarrow \sum x_i = 14$ The set of pareto efficient allocations is $...
user avatar
0 votes

Pareto Improvement with Monopolies

Most of the discussion on Pareto optimum misses the very basis of the model. It is simply a model describing how a set of producers and consumers moves to an equilibrium in a given market situation. ...
user avatar
2 votes

Reason behind Pareto principle

A starting point to understand physics is that is science built on experiments and models. Newton drops an apple and watches it fall. From this he created a model -- the so called Newton laws are ...
user avatar
0 votes

I know that pareto optimal does not mean equitable, but is an equitable distribution also pareto optimal?

Sometimes Pareto optimal distribution can be equitable but this is not often seen naturally. In any case when government has to redistribute resources around using distortionary taxes in order to ...
user avatar
  • 43.6k

Top 50 recent answers are included