= - 21. Consider the exchange economy in which there are two agents and two goods. Endowments are e¹ (1, 2) and e² (2,3), and household preferences are u¹ (x, y) = x x1/2y1/2 and u² (x, y) = x²/³ y¹/³. Find (compute and picture) the Pareto set, core and competitive equilibria of this exchange economy.
= - 21. Consider the exchange economy in which there are two agents and two goods. Endowments are e¹ (1, 2) and e² (2,3), and household preferences are u¹ (x, y) = x x1/2y1/2 and u² (x, y) = x²/³ y¹/³. Find (compute and picture) the Pareto set, core and competitive equilibria of this exchange economy.
Chapter13: General Equilibrium And Welfare
Section: Chapter Questions
Problem 13.5P
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21. Consider the exchange economy in which there are two agents and two goods. Endowments are e¹
(1, 2) and e²
(2,3), and household preferences are u¹ (x, y) = x
x1/2y1/2 and u² (x, y) = x²/³ y¹/³. Find
(compute and picture) the Pareto set, core and competitive equilibria of this exchange economy.
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