Suppose we write the distribution of utilities between two people as (utility of person 1, utility of person 2). Which of the following utility distributions would a Rawlsian social welfare function strictly prefer over the utility distribution (10, 9)? (9,9) O (10, 11) O (9,11) O (14,9)

Suppose we write the distribution of utilities between two people as (utility of person 1, utility of person 2). Which of the following utility distributions would a Rawlsian social welfare function strictly prefer over the utility distribution (10, 9)? (9,9) O (10, 11) O (9,11) O (14,9)

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter15: Strategic Games

Section: Chapter Questions

Problem 15.2IP

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Concept explainers

Form Utility

The term utility in general refers to the satisfaction earned from usage of a particular product or service. Utility always plays an important role because it influences various important elements like demand & thereby the price of the good or service as well. Though utility is not easy to measure, various types of economic models can be used indirectly. There can be various types of utilities like economic utility, marginal utility, cardinal utility, form utility.

Question

Suppose we write the distribution of utilities between two people as (utility of person 1, utility of person 2).
Which of the following utility distributions would a Rawlsian social welfare function strictly prefer over the
utility distribution (10, 9)?
O (9,9)
O (10, 11)
(9,11)
O (14,9)

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