Re: Doubts

Posted by Amit Goyal on Jan 20, 2017; 12:08pm
URL: http://discussion-forum.276.s1.nabble.com/Doubts-tp7603095p7603098.html

Answer to this problem is
(b) Everything else remaining the same, Agent A gets additional endowment

This changes the dimension of Edgeworth box, so initial allocation may no longer be efficient.