Comparison

Pareto Efficiency of the (I, I) Allocation in the Pest Control Game

The (I, I) allocation in the pest control game, with payoffs of (3, 3), is Pareto efficient. This is because no other feasible allocation—(T, T) at (2, 2), (I, T) at (1, 4), or (T, I) at (4, 1)—can improve one farmer's payoff without harming the other. On a graph representing the payoffs, the zone of potential Pareto improvement for the (I, I) point is the area above and to its right. Since none of the other possible outcomes from the game fall into this region, the (I, I) allocation is considered Pareto efficient.

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Updated 2026-05-02

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