1. Suppose two passengers both end up with a reservation for the last seat on a train from San Francisco to Los Angeles. Two alternatives are proposed.
A) Toss a coin.
B) Sell the ticket to the highest bidder.
Compare the two from the standpoint of efficiency and equity.
Tossing a coin would be more fair and equitable. This is because the probability of success/ failure is equal for both. So in the justice point of view, tossing a coin ...
Efficiency and equity is examined for two passengers ending up with a reservation for the last seat on a train.