Extend the model of the jungle to the case in which the number of houses is smaller than the number of agents. In this case, an allocation is a function from the set of agents to the set HU {homeless} with the property that no two agents are assigned to the same house. Each agent has a preference ordering over H U {homeless}. Assume that this ordering is strict; assume also that every agent prefers to be allocated any house than to be homeless. Define an equilibrium for this extended model and show that it always exists.

Extend the model of the jungle to the case in which the number of houses is smaller than the number of agents. In this case, an allocation is a function from the set of agents to the set HU {homeless} with the property that no two agents are assigned to the same house. Each agent has a preference ordering over H U {homeless}. Assume that this ordering is strict; assume also that every agent prefers to be allocated any house than to be homeless. Define an equilibrium for this extended model and show that it always exists.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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