# Questions tagged [edgeworth-box]

The tag has no usage guidance.

12 questions
Filter by
Sorted by
Tagged with
38 views

### Edgeworth Economy and Walras equilibrium

I have been given an Edgeworth Economy with to consumers A and B. Their preferences are given with the utility functions: My question is, how do I find the walras equilibrium? I tried starting out ...
1 vote
31 views

### Visualisation of a 3-person 3-good economy

Are there any theoretical or practical ways to visualise such an economy? I understand that a 2-person 3-good economy is visualised by a 3D Edgeworth Box (a cube), but what about a 3-person 3-good one?...
1 vote
247 views

### Shape of contract curve in an Edgeworth-Box economy

I've noticed that contract curves for preference functions $u_{1,2}=(x_1x_2)^{1/2}$ and $u_{1,2}=x_1(x_2)^{1/2}$ is the diagonal of the Edgeworth Box. A general question arose, and I can't figure it ...
109 views

### In a box diagram, why does efficiency locus lie on one side of the diagonal, if both sectors haves constant returns to scale function?

The following is what I understand, so far. If we measure labour in the $x$-axis and capital in the $y$-axis, the slope of diagonal of the box is the capital-labour ratio $K/L$ in the economy. Let $A$ ...
• 115
55 views

• 3
1 vote
66 views

### Pareto Set with strictly convex preferences

Suppose the agents A and B have the following utility functions $x_A y_A+12x_A+3y_A$ and $x_By_B +8x_B+9y_B$ respectively with endowments (8,30) and (10,10). The contract curve's equation turns out ...
• 207