There are three persons in an economy: Larry, Curley, and Moe. Imagine that each
ID: 1228767 • Letter: T
Question
There are three persons in an economy: Larry, Curley, and Moe. Imagine that each has a utility of 0 to 1. Define three different equilibria (or three solutions) (i.e. three vectors, each of length three, describing each of their utilities) A, B, and C such that A and B are Pareto optimal; C is Pareto dominated by B; but C is not Pareto dominated by A.
... answer:
Larry Curley Moe
A 1 1 0
B 0.2 0.2 1
C 0.2 0.2 .9
Can anyone please explain (in detail) how to answer this. I need to understand it thoroughly for my final!
Explanation / Answer
Hi I have done the solution for this in my notebook. But the solution is too big , I cannot type it here because very less time is remaining.. So please rate me Lifesaver and I'll share the answer with you through email or cramster inbox. I don't do this generally, but I have no other option here because there's very less time left... you need not worry as I have the solution ready