The Bergson-Samuelson Social Welfare Function
Up till now we’ve defined the social welfare functions over entire allocations (i.e., each person have an opinion about what all other persons get). If we assume that each individual is concerned only with him-/her we can define the social welfare functions only over the individual bundles,
This type of social welfare function is called a Bergson−Samuelson social welfare function, or an individualistic social welfare function (for obvious reasons). The important point of this function is that it conforms to the (implicit) assumptions that we’ve made in the proof of the first fundamental theorem of welfare economics, that there are no consumption externalities. Remember that the first theorem states that general competitive market equilibrium is Pareto-efficient. Now, if we use the Bergson-Samuelson social welfare function to pick the best point on the utility possibility frontier, this point is associated with competitive market equilibrium, and could be implemented as such given that lump-sum taxes can be used to redistribute initial endowments.
Latest technology based Economics Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Intermediate Microeconomics homework help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Intermediate Microeconomics, project ideas and tutorials. We provide email based Intermediate Microeconomics homework help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Intermediate Microeconomics. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Economics homework help and assignment help services. They use their experience, as they have solved thousands of the Computer assignments, which may help you to solve your complex issues of Intermediate Microeconomics. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!