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5 votes
1 answer
2k views

How to find the contract curve when both agents have linear utilities?

I'm trying to solve the following excercise: Find the contract curve for an exchange economy where agents' ($A$ and $B$) preferences and endowments are given by: $u_A = x_A + y_A$ $u_B = s x_A + y_A$ …
Nicolas Torres's user avatar
1 vote
1 answer
950 views

How to find the contract curve for a funky utility involving the min operator?

Suppose a pure exchange economy where agents’ ($A$ and $B$) preferences are given by the following utility functions: $u_A = \min(3x+y,x+3y)$ $u_B = x^\frac{1}{2} y^\frac{1}{2}$ Find the contract curv …
Nicolas Torres's user avatar
1 vote
1 answer
308 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 eq …
Nicolas Torres's user avatar
2 votes
2 answers
342 views

Finding Walrasian equilibria when Walrasian demands are not unique

I'm trying to solve the following excercise: Find the Walrasian equilibria for a pure exchange economy where agents' ($A$ and $B$) preferences and endowments are given by: $u_A = x_A + y_A$ $u_B = 2 x …
Nicolas Torres's user avatar
3 votes
1 answer
122 views

Find the Pareto Efficient allocations and Competitive Equilibrium when both agents have funk...

I'm trying to solve this General Equilibrium excercise which I find quite challenging as both agents have funky utility functions. Find the Pareto Efficient allocations and Competitive Equilibra for t …
Nicolas Torres's user avatar