Learn Before
The Role and Limitations of Quasi-Linear Preferences in Externality Models
Effect of Quasi-Linearity on the Number of Pareto-Efficient Outcomes
The assumption of quasi-linear preferences is a critical factor in determining the number of Pareto-efficient outcomes. Under quasi-linearity, a single, unique level of output is Pareto efficient. In the absence of this assumption, multiple Pareto-efficient output levels can exist, with the specific outcome being dependent on the incomes of the involved parties.
0
1
Tags
Library Science
Economics
Economy
Social Science
Empirical Science
Science
CORE Econ
Introduction to Microeconomics Course
Related
Effect of Quasi-Linearity on the Number of Pareto-Efficient Outcomes
Pareto Inefficiency Example: Banana Plantations and Fishermen
Application of Quasi-Linear Preferences in the Weevokil Model
Application of Quasi-Linear Preferences to Air Pollution and Its Limitations
Graphical Representation of the Banana Market with Negative Externalities (Figure 10.3)
Effect of Quasi-Linearity on Payoff Maximization and Marginal Costs
Independence of the Pareto-Efficient Quantity (Q*) from Income Distribution
Marginal External Cost in a General Utility Model
Generality of the Constrained Choice Method for Finding Pareto-Efficient Allocations
Learn After
Comparison of Pareto-Efficient Allocations in the Angela-Bruno Model: Quasi-Linear vs. Non-Quasi-Linear Preferences
In an economic model involving the allocation of a good between two individuals, under what circumstances would the set of Pareto-efficient quantities of that good contain a range of possible values instead of a single, unique value?
Efficient Outcomes and Preference Structure
Quasi-Linear Preferences and Pareto Efficiency
Match each preference structure with its corresponding implication for the number of Pareto-efficient outcomes in an economic model.
Implications of Preference Assumptions on Efficiency
In an economic model with two individuals, if reallocating income between them results in a change to the efficient quantity of a good to produce, it can be inferred that the preferences of at least one of the individuals are not quasi-linear.
An economy with two individuals, A and B, is at a Pareto-efficient allocation of a good. The preferences of at least one individual are not quasi-linear. Now, a lump-sum transfer of income is made from individual A to individual B. Arrange the following steps in the logical order they would occur, leading to a new Pareto-efficient quantity of the good.
Evaluating a Modeling Assumption
In a two-person economy, if each person's marginal willingness to pay for a specific good does not change when their income changes, the set of Pareto-efficient allocations will involve a __________ quantity of that good.
Evaluating Economic Models for Public Policy