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ID: past-exam-of-the-mathematics-course-of-the-university-of-cambridge/2004/iii/paper-36/2/a/solution
Past exam of the mathematics course of the University of Cambridge 2004 iii Paper 36 2 a Solution by
Codex 0 Created 2026-10-03 Updated 2026-10-14
Use the exact-resource-balance convention for an exchange economy. If is the integrable initial-endowment profile, a feasible consumption allocation is a measurable integrable function withIt is Pareto efficient if there is no other feasible consumption allocation satisfying for almost every consumer and on a set of positive measure. A Pareto improvement makes nobody worse off, up to a null set, and makes a positive-measure group strictly better off. Positive measure is essential: reallocating to a single consumer of zero mass does not constitute an aggregate Pareto improvement.
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