Wednesday, September 20, 2017
Outline- reminder PS1 due 9/26 noon
Is there freedom? No. Bad.
Yes - is everything known? No, it could be bad
Yes - exchange is very likely good.
Ex: coffee is $2.50, I know everything about it. Exchange will only happen if buyer's valuation > $2.50. seller's valuation < $2.50.
Buyer benefit = her or his valuation - $2.50
Seller benefit = $2.50 - her or his valuation
Everyone benefits. Pareto improvement.
Created with Microsoft OneNote 2016.