Mutually altruistic trends in resources allocation

Solutions to a series of apparent paradoxes arising in problems dealing with resources allocation under mutually altruistic conditions are presented. In particular, Bergstromʹs lovers’ dilemma (J. Econ. Perspect. 3 (1989) 165) is dealt with as an explicit example of such apparent paradoxes. Bergstromʹs discovery of a transition point in utility functions that express altruistic relationships is shown to apply generally to any non-indifferent relationship (and not necessarily altruistic) between consumers, and to general utility functions.