Pareto efficiency and Competitive Equilibrium
Posted by Sia on Feb 14, 2017; 4:43pm
URL: http://discussion-forum.276.s1.nabble.com/Pareto-efficiency-and-Competitive-Equilibrium-tp7603189.html
Agent a utility function min(x,2y) endowment (4,0)
Agent b utility function min(2x+y,x+2y) endowment (0,3)
Find out:
1- Pareto optimal allocation
2- Competitive equilibrium prices and allocations
3-Utility possibility frontier
Will the pareto efficient allocations be the y2 axis?
Please help me with a detailed answer.