Question 1 Consider 5 individuals who make a team on a group project with 5 tasks that the members need to divide up evenly. The agents' preferences are as follows 11 12 13 14 15 t3 t5 t3 t3 t4 t5 t₁ t4 t₁ t₁ t1 t3 t2 t2 t2 t₁ t2 t₁ t3 t5 t2 t4 t5 t4 t3 (a) Suppose that individuals are ordered as follows: 5,3,4,2,1. What is the assignment produced with the serial dictatorship? (b) Suppose that for j = 1,...,5 individual ij owns task tj. If individuals are allowed to trade tasks, find an allocation that is in the core (c) Provide the order of agents for which the serial dictatorship produces the same allocation as part b

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Chapter14: Transaction Costs, Asymmetric Information, And Behavioral Economics
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Question 1 Consider 5 individuals who make a team on a group project with 5 tasks that the
members need to divide up evenly. The agents' preferences are as follows
11 12 13 14 15
t3 t5 t3 t3 t4
t5 t₁ t4
t₁
t₁
t1 t3 t2 t2 t2
t₁ t2 t₁
t3 t5
t2 t4 t5 t4 t3
(a) Suppose that individuals are ordered as follows: 5,3,4,2,1. What is the assignment
produced with the serial dictatorship?
(b) Suppose that for j = 1,...,5 individual ij owns task tj. If individuals are allowed to trade
tasks, find an allocation that is in the core
(c) Provide the order of agents for which the serial dictatorship produces the same
allocation as part b
Transcribed Image Text:Question 1 Consider 5 individuals who make a team on a group project with 5 tasks that the members need to divide up evenly. The agents' preferences are as follows 11 12 13 14 15 t3 t5 t3 t3 t4 t5 t₁ t4 t₁ t₁ t1 t3 t2 t2 t2 t₁ t2 t₁ t3 t5 t2 t4 t5 t4 t3 (a) Suppose that individuals are ordered as follows: 5,3,4,2,1. What is the assignment produced with the serial dictatorship? (b) Suppose that for j = 1,...,5 individual ij owns task tj. If individuals are allowed to trade tasks, find an allocation that is in the core (c) Provide the order of agents for which the serial dictatorship produces the same allocation as part b
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