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Questions tagged [pure-exchange-economy]

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2 votes
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Endowment increases but utility reduces

In an Edgeworth economy with two agents and two goods, Player A has endowment $\left(a,\,0\right)$ and utility $u_{A}\left(x_{1},\,x_{2}\right)=\min\left(\gamma x_{1},\,x_{2}\right)$ in which $\gamma&...
Erik Apostol's user avatar
1 vote
1 answer
88 views

Trying to understand Walrasian equilibrium (Brown & Matzkin 1996)

I'm trying to understand page 6-7 of the Brown & Matzkin paper. Here is an example: Consider a 2-person, 2-good pure exchange economy $E=(u_i,w_i)_{i=1}^2$ where both utility functions are ...
Ludwig Gershwin's user avatar
1 vote
0 answers
140 views

Utility Possibility Set and Utility Possibility Frontier

Consider an Exchange economy with two individuals $a$ and $b$ and two goods $1$ and $2$. Denote consumption of good $j$ by individual $i$ as $x_{ij}$ for $i\in\{a,b\}$ and $j\in\{1,2\}$ The utility ...
mynameparv's user avatar
1 vote
0 answers
90 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?...
Nick The Dick's user avatar
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27 views

Increase in income in an economy would increase

Increase in income in an economy would increase the following except Consumption Savings Imports Exports
Janu's user avatar
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difference between "crawling like arrangement" and "stabilized arrangement"

What is the difference between "crawling like arrangement" and "stabilized arrangement" ? what about margins ? both less than + or -1% ?
Leila Zniber's user avatar