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so this is for all I--X^(i), let's put the i's on the top.
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If and only if everybody's better off: W^(i) (X^(i)-hat,
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If and only if everybody's better off: W^(i) (X^(i)-hat,
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Y^(i)-hat) is bigger than W^(i)(X^(i), Y^(i)).
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Y^(i)-hat) is bigger than W^(i)(X^(i), Y^(i)).
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So we started with an allocation, the E allocation
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So we started with an allocation, the E allocation
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here, and then we moved to competitive equilibrium here and
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here, and then we moved to competitive equilibrium here and
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everybody was better off.
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everybody was better off.
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So the equilibrium allocation Pareto dominates the initial