Suppose a man and a woman are in love and care for the other's happiness as well as their own consumption.Suppose the man is more selfish than the woman
UM = CM^2/3 UW^1/3
UW = CW^1/2 UM^1/2
They will maximize the joint happiness (UM + UW) where

Question

Quizplus · Accepted Answer

Since the man is more selfish, his utility will have a higher weight in the joint utility function UM+UW. Therefore, we need to focus on maximizing his utility first. This means we need to choose a value of CM that maximizes UM. However, since they both care about the other's happiness, we also need to make sure that UW is not too low. This means we need to choose a value of CW that maximizes UW, while also considering the value of CM already chosen.

From UM, we can see that the higher the value of CM, the higher the utility for the man. However, we also need to ensure that UW is not too low. From UW, we can see that the higher the value of CW, the higher the utility for the woman. However, we also need to consider that the value of CM already chosen will affect UW.

Therefore, the best choice(s) would be in the range where CM is between 50 and 100 and CW is between 0 and 50. This allows for the man's utility to be maximized while also ensuring that the woman's utility is not too low. The specific values within this range will depend on the exact values of the parameters in the utility functions.

Suppose a Man and a Woman Are in Love and Care