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Assume that the economy consists of two infinitely lived consumers named i = 1 , 2 . There is one nonstorable consumption good. Consumer i

Assume that the economy consists of two infinitely lived consumers named i=1,2. There is one nonstorable consumption good. Consumer i consumes cti at time t. Consumer i's preferences over consumption streams are represented by
E0t=0tlog(cti),in(0,1)
The endowments are decided each period by a toss of a fair coin. If the outcome of the coin toss is heads (H), consumer 1 receives one unit of the consumption good, and consumer 2 receives nothing. If the outcome is tails (T), consumer 2 receives one unit of the consumption good, and consumer 1 receives nothing.
(i) Let st={H,T} denote the state of the economy at date t.qt0(st) denotes the time 0 price of an Arrow-Debreu security that pays one unit of consumption in date t conditional on state st, and cti(st) denotes consumer i' s consumption at date t in state st. Define an Arrow-Debreu competitive equilibrium.
(ii) Compute the equilibrium under the assumption that Arrow-Debreu securities are traded in time 0 after the realization s0=H. Explain your answer
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