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Figure 5.22 - Comparison of Outcomes Across Different Cases

Figure 5.22 presents a summary comparison of outcomes from different institutional scenarios, focusing on total grain production, Angela's free time, and the division of output. The figure shows that Pareto-efficient allocations result in 46 bushels of grain, corresponding to 16 hours of free time for Angela, while inefficient situations like 'Contract N' yield only 35 bushels. It also illustrates that Angela's share of the output grows with the strength of her reservation option, increasing from 33% (15 bushels) under forced labor to 70% (32 bushels) following legislative changes and negotiation. The analysis of these scenarios in the Angela and Bruno story yields three main lessons regarding the interplay of efficiency and fairness.

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Updated 2026-05-02

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