Chapter 8: Social Choice and Efficiency Flashcards
1
Q
Pareto Efficient
A
Given a set A\subseteq X, the set of pareto efficient points are the points for which there does not exist a pareto superior choice.
2
Q
When is there a non-empty Pareto frontier?
A
a) A is finite or b) it is compact and preferences are continuous.
3
Q
Alternative way to characterize a pareto efficient allocation?
A
If it is a solution to a strictly increasing utility imputation optimization problem.
4
Q
When is a pareto efficient allocation the solution to a wieighted average problem?
A
If the set of no greater than utilities is convex. This is also given by convex X and concave u_h.
