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The Role of Preferences in Identifying Pareto-Efficient Allocations
Bruno's Preferences in the Angela-Bruno Model
In the Angela-Bruno model, Bruno's well-being is determined solely by the amount of grain he receives as a landowner. He is indifferent to Angela's amount of free time or how many hours she works, as these do not directly affect his utility. His primary objective is to maximize his share of the grain. This specific preference structure means his indifference curves, when plotted on a graph of Angela's free time versus grain, are represented as horizontal lines, as illustrated in Figure 5.3c.
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Mathematically Deriving the Pareto Efficiency Curve for the Angela-Bruno Interaction
Bruno's Preferences in the Angela-Bruno Model
Angela's Preferences for Grain and Free Time
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Determining Bruno's Profit-Maximizing Allocation under Coercion
Angela's Survival Constraint as a Limit on Bruno's Power
Figure 5.3c - Bruno's Preferences for Grain and Angela's Free Time