Allocational problem and distributional problem

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Distinguish between the allocational problem and the distributional problem faced by the agents in the Fisher’s Dilemma discussed in class. Specifically, if Alfredo suggested that he fish for 8 hours and that Bianca fish for only 6 in exchange for part of his catch (reducing his payoff to 1 and increasing hers to 0), would this be a Pareto-improvement over the outcome when both fish 8 hours? Why might Bianca nonetheless refuse this deal?

Reference no: EM131244218

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