# Questions tagged [pure-exchange-economy]

The tag has no usage guidance.

37 questions
Filter by
Sorted by
Tagged with
527 views

### Fair and efficient allocation of "family goods"

Consider an exchange economy with two goods, e.g. home furniture (x) and electrical equipment (y). The interesting thing about these goods is that, when a family owns a bundle, all members of the ...
• 3,075
368 views

### Pure exchange economy: Set of multiple equilibria endowments

Initial endowments which can result in multiple equilibria in a pure exchange economy are explained here. Given a pure exchange economy, that is given the utility functions (which fulfil the usual ...
• 29.4k
2k views

### Pure exchange economy: Given an initial endowment are multiple equilibria possible?

Consider a pure exchange economy with two goods ($x_1,x_2$) and two consumers $A,B$. Both users have an initial endowment, $(\omega_1^A,\omega_2^A)$ and $(\omega_1^B,\omega_2^B)$ respectively. A price ...
• 29.4k
1k views

1 vote
375 views

### How do I find the set of pareto optimal allocations?

Suppose there are 2 individuals and 2 goods. $u_1(x_1,y_1)=x_1+2y_1$, and $u_2(x_2,y_2)=x_2+y_2$. There are 2 units of good $x$ and 1 unit of good $y$ in total. How do I find the set of Pareto optimal ...
1 vote
269 views

### General equilibrium with market power

I'm trying to solve the following problem: Consider an exchange economy with two consumers, $A$ and $B$, whose utility functions are: \begin{align*} u_{A} & = x_1^A x_2^A \\ u_{B} & = x_1^B (...
1 vote
144 views

### Is there/can we define a notion of Giffen goods in pure exchange economies?

I was checking some questions I recently answered here on General Equilibrium, and a result from this one (Exchange economy with two agents, what's the competitive equilibrium?) drew my attention: ...
• 2,259
1 vote
288 views

### How to find the Walrasian equilibrium for non monotonic utility functions?

I just say Amit's comment on this question: The second welfare theorem without monotonicity so I got curious and tried to find both the contract curve for that particular problem, and the Walrasian ...
• 2,259
1 vote
101 views

### Net and gross market clearing in endowment economy

My question relates to an endowment economy. We assume perfect competition and markets clear, i.e. supply = demand. The way my professor defined it, he said endowment (per good) = supply (per good) = ...
• 21
1 vote
319 views

546 views

### Exchange economy find core

Find Pareto optimal allocations and the core for the following economies Consider an exchange economy with two agents and two goods. Let consumption sets are the nonnegative orthant. Agent 1’s utility ...
• 172
48 views

### Why can’t we know the specific outcome of an exchange economy with initial resource endowment?

In a 2-person exchange economy we define the contract curve as the subset of all Pareto-efficient outcomes within the ‘lens’ bounded by both agents’ indifference curves through $\vec{R}$ which is the ...
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
• 1
If agent A has utility function $u(x_1, x_2)$ and agent B has utility function $v(x_1, x_2)$, what are the equation(s) that characterize the Pareto-efficient allocation of goods in the Edgeworth box? ...