Define what are the pareto optimal allocations

Assignment Help Econometrics
Reference no: EM13222485

Recall the split the dollar example discussed in class. In that example there are two individuals (A and B) and the set of possible allocations is

X = {(xA;xB) : xA > 0, xB > 0, xA +xB < 100}

Consider the following variation. The only difference is that now when two agents agree on (50, 50), each gets 20 as a bonus. What are the Pareto optimal allocations? (An allocation specifies how much each agent ultimately gets.) What the bonus associated with (50, 50) is 60 each?

Reference no: EM13222485

Questions Cloud

Define the mole fraction of caffeine : Caffeine (C8H10N4O2) is a stimulant found in coffee and tea. If a solution of caffeine in chloroform (CHCl3) as a solvent has a concentration of 0.0870 m, calculate the following. (a) the percent caffeine by mass (b) the mole fraction of caffeine
What are major economic justification for state intervention : The term "globalization" is increasingly being used in the study of international relations and international political economy. Increasingly, also, there are debates surrounding the definition of the term and the extent of relevance in the global..
Explain the vapor pressure of a solution containing : The vapor pressure of a solution containing 5.40 g of a nonvolatilesubstance in 90 g water is 23.32 torr. What is the molar mass of the solute?
Find out the mass percentage of nacl in the mixture : When 13.0 g of the mixture is dissolved in enough water to make 500. mL of solution, the solution exhibits an osmotic pressure of 6.85 atm at 25°C. Determine the mass percentage of NaCl in the mixture.
Define what are the pareto optimal allocations : The only difference is that now when two agents agree on (50, 50), each gets 20 as a bonus. What are the Pareto optimal allocations. (An allocation specifies how much each agent ultimately gets.) What the bonus associated with (50, 50) is 60 each.
What are the excess reserves and required reserves : Assume a depository institution holds vault cash of $3 million, reserve deposits at the Fed of $25 million, and has borrowed $2 million from the Fed's discount window. If that institution holds $300 million in transactions deposits and is subject ..
What are the excess reserves and required reserves : Assume a depository institution holds vault cash of $3 million, reserve deposits at the Fed of $25 million, and has borrowed $2 million from the Fed's discount window. If that institution holds $300 million in transactions deposits and is subject ..
Compute the molar concentration of o2 at equilibrium : 2NO2(g)has come to equilibrium, the concentration of NO2 is 2.2 x 10-3 mol/L. Calculate the molar concentration of O2 at equilibrium.
What are the excess reserves and required reserves : Assume a depository institution holds vault cash of $3 million, reserve deposits at the Fed of $25 million, and has borrowed $2 million from the Fed's discount window. If that institution holds $300 million in transactions deposits and is subject ..

Reviews

Write a Review

Econometrics Questions & Answers

  How much would cumulative spending increase as a result

To get an idea of how much those government rebate checks have spurred spending-and who's benefiting from the buying-business school professors Jonathan Parker (Northwes t ern) and Christian Broda (University of Chicago) analyzed the spending of 3..

  What is the number of degrees of freedom

Where Qx is the quantity demanded of Product X, Px is the price of X, Y is income, and r is the prime interest rate (given in decimals, e.g., 0.02 or 0.05) The standard error of each estimated coefficient is given in parentheses below it. Also, th..

  Calculate the country''s steady state level of output

A country is described by the Solow Model with a production function y = \(k^{1/2}\) where y is output per worker and k is capital per worker. Now suppose that the fraction of output invested (or saved) is 50%. Assume that the depreciation rate is..

  Why profit maximizng monopolist does practice discrimination

what uniform price will he charge and how much profit will he earn. The following figure shows the demand and marginal revenue for a monopolist, who has many buyers with different valuations of the good.

  What will be the corresponding nominal interest rate

Suppose that the velocity of money is not constant but is growing at 1% per year. Real GDP is growing by 5% per year. If the central bank wants to reduce the rate of inflation to 3%, what must be the new rate of money growth? If the real rate if r..

  Which program do you think most families would choose

The government is considering two policies: 1) in kind transfers of paper vouchers to families that can be exchanged for food or 2) a direct cash payment (of an amount equal to the value of the paper vouchers) that can be used for any purpose.

  Derive the law of motion of capital per worker

Derive the law of motion of capital per worker and draw the graph of the law of motion of capital per worker, and indicate the steady state.

  Interpret the regression equation

State carefully the ceteris paribus assumption in this case. Do you think this simple regression of Y on X satisfies that assumption? Why or why not?

  Determine the demand function and inverse demand function

The demand for good X is given by: Qdx= 1,200-1/2Px+1/4Py-8Pz+1/10M Research shows that the prices of related goods are give by Py=$5,900 and Pz=$90, while the average income of individuals consuming this product is M=$55,000.

  What was the equilibrium rice of a box

In 2012, the box industry was perfectly competitive. The lowest point on the long-run average cost curve of each of the identical box producers was $4, and this minimum point occurred at an output of 1,000 boxes per month. The market demand curve..

  Determine what was wrexingtons gdp in 2008

In the economy of Wrexington in 2008, consumption was one-half of gdp, government purchases were $2000 more than investment, investment was one-sixth of gdp, and the value of imports exceeded the value of exports by $500.

  Determine the output per worker

In this question we are going to incorporates investment in human capital by agents, in a form similar to physical capital. Labor units are replaced by human capital units Y = AK?(?H)1?? where • H ? Units of Human Capital • ? ? [0, 1] ? Fraction of..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd