课件1ppt课件ppt课件.pptx

:WhatisEfficiency?(1Market)(ManyMarkets)(ManyMarkets):Individualstakingdecisionstomaximizeprofitorutility.(individualistic).(Howresourcesareallocated.): Whydooptimizersdowhattheydo?Information: Whatdoindividualsknowandisthisuseful?Surprisingidea:mongood.(Incertaincases.)Marketsandotherdomainswhereindividualsinteractaggregateindividual’:? WeuseUtilitytomeasurewelfare/:WhatisFeasible1’sUtility2’sUtilityUtilityPossibilities:WhatisFeasible1’sUtility2’sUtilityAllocationsParetoefficiency:Thereisnowaste1’sUtility2’sUtilityParetoefficientAllocationEquity:equalshares1’sUtility2’sUtilityU1=U2Utilitarianism:MaximizeU(1)+U(2)1’sUtility2’sUtilityRawls:Maximizemin{U(1),U(2)}1’sUtility2’sUtility