The utility possibility frontier helps to predict the exact bargain two parties will arrive at.

Question

Quizplus · Accepted Answer

The utility possibility frontier (UPF) is a graphical representation of the potential agreements between two parties that maximize their combined utility. It shows the range of possible outcomes based on each party's preferences and constraints. However, it does not predict the exact bargain that the parties will arrive at, as the actual outcome depends on the negotiation process and the specific preferences and strategies of the parties involved.

The Utility Possibility Frontier Helps to Predict the Exact Bargain