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Unformatted text preview: maximize the sum of utilities. d. The following dominates n=1: admit also student 2, and let him pay one unit to student 1. Then 1 is exactly as happy as before, and 2 got a positive utility instead of zero. All the others are indi/erent. 4. Think of this as a game: each one has two strategies to stick to the old path or to take the new path. Suppose that Z takes the old path: if I took the old path she would spent 30 minutes, while in the new path it would take only 29. Suppose that Z takes the new path: if I took the old path she would spent 35 minutes, while in the new path it would take only 34. So no matter what Z does it is optimal for I to take the new path. Similarly, no matter what I does , it is optimal for Z to take the new path. 1...
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This note was uploaded on 01/14/2012 for the course ECON 201 taught by Professor Witte during the Spring '08 term at Northwestern.
 Spring '08
 Witte
 Macroeconomics

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