Re: exchange economy numerical

Posted by Rayee on Apr 18, 2018; 5:40pm
URL: http://discussion-forum.276.s1.nabble.com/exchange-economy-numerical-tp7609028p7609036.html

Plot A and B's preference in an Edgeworth box. A's ICs are downward sloping straight lines, B's ICs are concave from B's POV. Clearly, there will be corner solution. Locate the first and second allocations, you will realize that only in the first allocation it is not possible to make some one better off without making the other worse off.