Questions tagged [edgeworth-box]
The edgeworth-box tag has no usage guidance.
8
questions
1
vote
0answers
24 views
Leontif case for Edgeworth box
Consumer 1 has utility $u_1=min\{x_1,y_1\}$, Consumer 2 has utility $u_1=min\{x_1,2y_1\}$, their endowments are $w_1=(a,0)$ and $w_1=(b,0)$ and in this case $a=b$.
I know the offer curves look like ...
2
votes
1answer
89 views
Offer curves in general equilibrium
I'm having trouble understanding how to find the offer curves in general equilibrium. Is there a general way that we can use to find it?
I can understand the Pareto set and contract curve but when it ...
1
vote
0answers
16 views
Price equilibria with transfers
I am pretty new to Microeconomics so please bear with me if I am missing something obvious.
I am solving the following problem:
The question is in the setting of pure exchange economy with two ...
2
votes
1answer
60 views
CES utility function in an Edgeworth box
Two consumers have the CES utility function $x_1^\beta +x_2^\beta$, for $0<\beta<1$, their initial endowments are $w^1=(1,0)$, $w^2=(0,1)$ Draw the Core of this economy in an Edgeworth box. Note ...
0
votes
0answers
48 views
Unique competitive equilibrium in an exchange economy
I was working on the following excercise:
In an exchange economy $\varepsilon$ with two goods and strictly monotone, continous and strict concave utility functions, suppose all demand functions are ...
0
votes
1answer
207 views
How to find the Utility Possibility Frontier when there are Perfect Substitutes?
I am trying to derive the Utility Possibility Frontier (UPF) when both utility functions display perfect substitutes (in an Edgeworth economy with to consumers and two goods).
The specific problem:
$...
1
vote
0answers
48 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 ...
4
votes
1answer
109 views
Contract curve and Pareto frontier
Consider an exchange economy with two agents.
Each agent $i \in \{1,2\}$ derives utility $u^i(x_1,x_2) \in \mathbb R$ by consuming $(x_1,x_2) \in \mathbb R_+^2$.
Let $u_j^i(x_1,x_2) = \partial u^i(...
