Hippo, Lion, and Possum must decide how to split up the three bedrooms (big, medium, and small) in the house that they are renti

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Hippo, Lion, and Possum must decide how to split up the three bedrooms (big, medium, and small) in the house that they are renti

ng.Hippo values the big bedroom at $700, the medium bedroom at $200, and the small bedroom at $100.Lion values the big bedroom at $500, the medium bedroom at $300, and the small bedroom at $100.Possum values the big bedroom at $300, the medium bedroom at $200, and the small bedroom at $100.The bedrooms are indivisible. No animal can use more than one bedroom. (That is, the marginal value of a second or third bedroom is $0.)Which of the following splits is efficient?All of these splits are efficient.None of these splits are efficient.Hippo gets the medium bedroom; Lion gets the small bedroom; Possum gets the big bedroom.Hippo gets the small bedroom; Lion gets the big bedroom; Possum gets the medium bedroom.

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1 answer:

arsen [3.4K] · Answer 1 · 2026-03-09T09:47:05+03:00

Answer:

None of the distributions are optimal

Explanation:

None of the distributions are optimal

Justification: All three players have the same preference for the bedrooms: they rank the large room as most valuable, the medium room as moderate, and the small room as least desirable. Each player desires the large room to enhance their overall satisfaction and payoff. Distributing the large room to one player, the medium room to another, and the small room to the last player without additional compensation will likely result in feelings of jealousy among them.