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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? …
asked Aug 1 '18 by Siddhartha
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I don't know why this got down-voted. I'll post my attempt anyway... $MRS_A(x_A^1, x_A^2)=MRS_B(x_B^1, x_B^2)$ $\displaystyle\left.\frac{\partial{u}/\partial{x_1}}{\partial{u}/\partial{x_2}}\right|_ …
answered Aug 1 '18 by Siddhartha