Find the distribution of the goods

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Choose the best answer in the bracket [ ].

Suppose that Alice and Bob want to divide 4 goods: a watch, a ring, a necklace and a pair of earrings. Here are the values they put on the goods. 

 

Watch 

Ring 

Necklace

 Earrings

Alice 

200

600

100

100

Bob 

150

500

200

150

We cannot cut the goods.

(a) Which distributions of goods are Pareto-dominated? ( Look for pairs of goods i; j such that if Alice has i and Bob has j; one agent would be strictly better off and the other at least as good if they traded i for j)

(b) Find the distribution of the goods chosen by Spliddit (and show why).

(c) Find the distribution of the goods chosen by the classical utilitarian criteria. 

Reference no: EM133066031

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