Illyyas Ahmed and Prince Jain
This week’s discussion was based on the age-old economic problem of efficient resource allocation which we analyzed as presented in Mr. Steven Cheung’s monograph – The Myth of Social Cost.
The argument began by describing the efficient allocation state using the Pareto condition, the definition of which plays a defining role in our understanding of the choices in an economic environment and goes as follows:
“A state where it is no longer possible to re-allocate the use of resources so that one individual will gain without loss to another”
In a Robinson Crusoe economy (one-man economy), the absence of other agents implies an inability to contemplate inefficiency as every decision, assuming rationality, will be taken in best interests of the individual without any loss to others. The resources thus will always be efficiently allocated. This property however is lost in a society with other subjects…
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Utopia, you are standing in it! 
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