Pareto efficient allocations Martin Caley MCaley martin.caley@economics.treasury.gov.im

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Topic: Pareto efficient allocations
Conf: Chapter 5, General Equilibrium, Msg: 14354
From: Martin Caley (martin.caley@economics.treasury.gov.im)
Date: 3/5/2004 09:27 AM

Pareto efficient allocations Martin Caley MCaley martin.caley@economics.treasury.gov.im The reason is that Jehle/Reny assume that the utility function is continuous and strongly increasing (Assumption 5.1). Under these assumptions weak and strong Pareto efficiency are equivalent. See, for example, Varian Microeconomic Analysis, 3rd edition, page 323.