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The marginal utility to B is bigger than the margin
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utility--of X--is bigger than the margin utility to A of X.
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So clearly the final equilibrium allocation doesn't
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maximize the sum of utilities.
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By switching some goods from A to B you could make both people
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better off clarification: you could increase the sum of
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both peoples' utilities, though one person would end up .
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So that was a shock to economists.
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It meant that the argument they'd relied on,
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the thing which they were using to persuade policy people that
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the free markets were a good thing, is a false argument.
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It rests on a premise that's indefensible,