Distinguish between the allocational problem and the


Distinguish between the allocational problem and the distributional problem faced by the agents in the Fisher’s Dilemma discussed in class. Specifically, if Alfredo suggested that he fish for 8 hours and that Bianca fish for only 6 in exchange for part of his catch (reducing his payoff to 1 and increasing hers to 0), would this be a Pareto-improvement over the outcome when both fish 8 hours? Why might Bianca nonetheless refuse this deal?

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Business Economics: Distinguish between the allocational problem and the
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