Question
In a pure-exchange Edgeworth box model, let both consumers (denoted by j) have the following Cobb-Douglas utility function : U (x1i,x2i) = x1i alpha x2i
In a pure-exchange Edgeworth box model, let both consumers (denoted by j) have the following Cobb-Douglas utility function :
U (x1i,x2i) = x1ialphax2i (1-alpha); i=1,2
The endowments are e1 = (1,2) and e2 =(2,1). Find the ratio of the prices.
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Survey of Economics
Authors: Irvin B. Tucker
8th edition
1111989664, 978-1133713357, 1133713351, 978-1111989668
