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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:
$u_A = x_A + y_A$
$u_B = s x_A + y_A$
…
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 …
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 …
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 …
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 …