First Welfare Theorem
Applying the first welfare theorem: competitive equilibrium allocations are Pareto efficient.
Emily and Sarah each own a selection of tech gadgets including smartphones, laptops, and smart home devices. They both engage in a competitive market to trade these items until they are satisfied with the market prices. Assume the goods are divisible and the market reaches a competitive equilibrium: at the market prices every participant ends up with the bundle they like best among those they can afford, every market clears, more of a good is always better, and nobody is affected by what others hold or consume (there are no externalities). After the market reaches this equilibrium, is there any further trade that would make some participant better off without making anyone worse off?
Use it
from datasets import load_dataset
ds = load_dataset("narunraman/steer_me", "welfare_theorem_1")curl "https://steer-benchmark.cs.ubc.ca/api/sample?element_name=welfare_theorem_1&n=5&seed=42"
See the Reference for the parameters.