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Unformatted text preview: 1 ,...,I } . Adding (2) over all i , and using (3), we get I X i =1 u i ( a ) > I X i =1 u i (ˆ a ) so that ˆ a does not solve (1). ± More generally, let W : R I → R be a strictly increasing function. Any maximizer of W ( u 1 ( a ) ,...,u I ( a )) on A is Pareto optimal . The lemma is the special case in which W = ∑ u i . 1...
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This note was uploaded on 11/19/2010 for the course ECON 202 taught by Professor Schlee during the Spring '10 term at ASU.
- Spring '10