Case Study

The Missing Information for Efficiency Analysis

An economist is analyzing how two roommates, Sam and Pat, allocate their shared weekend time. The economist has identified three possible outcomes for how they could spend their 8 hours of available shared time on Saturday:

  • Outcome X: 6 hours spent cleaning the apartment, 2 hours spent on leisure activities.
  • Outcome Y: 4 hours spent cleaning the apartment, 4 hours spent on leisure activities.
  • Outcome Z: 2 hours spent cleaning the apartment, 6 hours spent on leisure activities.

Based only on the information provided, explain why it is impossible to determine which of these outcomes are Pareto-efficient.

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Updated 2025-08-10

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