Divya and Emily have to divide a bag of 200 pistachios between them. They derive enjoyment from pistachios according to the following hedonic utility functions: uD(x) = √x for Divya; uE (x) = 2√x for Emily (where x is the number of pistachios eaten). (a) Consider all possible ways of dividing the pistachios. Treating the utilities given above as the two agents" "levels," which division is best according to the utilitarian criterion? (b) Which division is best according to the leximin criterion? (c) Which is best according to the Nash criterion?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Divya and Emily have to divide a bag of 200 pistachios between them. They derive enjoyment from pistachios according
to the following hedonic utility functions: uD(x) = √x for Divya; uE (x) = 2√x for Emily (where x is the number of
pistachios eaten). (a) Consider all possible ways of dividing the pistachios. Treating the utilities given above as the two
agents" "levels," which division is best according to the utilitarian criterion? (b) Which division is best according to the
leximin criterion? (c) Which is best according to the Nash criterion?
Transcribed Image Text:Divya and Emily have to divide a bag of 200 pistachios between them. They derive enjoyment from pistachios according to the following hedonic utility functions: uD(x) = √x for Divya; uE (x) = 2√x for Emily (where x is the number of pistachios eaten). (a) Consider all possible ways of dividing the pistachios. Treating the utilities given above as the two agents" "levels," which division is best according to the utilitarian criterion? (b) Which division is best according to the leximin criterion? (c) Which is best according to the Nash criterion?
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