# Questions tagged [edgeworth-box]

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### 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 ...
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### 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 $A$ ...
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Consider the following Edgeworth economy. There are two consumers $i \in {1,2}$ and two goods x and y. Consumer $i$ consumes $(x_i,y_i)$, where $x_i ≥0$ and $y_i ≥0$. Endowments are $ω_1 =(a,0)$ and $... 0answers 48 views ### Leontif case for Edgeworth box Consumer 1 has utility$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$. I know the offer curves look like ... 1answer 102 views ### Offer curves in general equilibrium I'm having trouble understanding how to find the offer curves in general equilibrium. Is there a general way that we can use to find it? I can understand the Pareto set and contract curve but when it ... 0answers 19 views ### Price equilibria with transfers I am pretty new to Microeconomics so please bear with me if I am missing something obvious. I am solving the following problem: The question is in the setting of pure exchange economy with two ... 1answer 65 views ### CES utility function in an Edgeworth box Two consumers have the CES utility function$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 ... 1answer 270 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:$...
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 ...
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(...