econ.studio
Exchange Economies
Section 6 of 12
Section 6

The Edgeworth Box, Live

Below is the Edgeworth box for the current parameters. Agent A's consumption is measured from the lower-left origin (OAO_A); B's mirror-image consumption is measured from the upper-right (OBO_B). The shaded lens is the set of allocations that make both agents weakly better off than at the endowment. The contract curve passes through every Pareto-efficient allocation; the highlighted segment is the core — the subset that is also individually rational. The equilibrium allocation is where the budget line is tangent to both indifference curves.

Edgeworth box

Equilibrium summary

No scalar found for key: equilibrium_price_ratio
No scalar found for key: x_a1_star
No scalar found for key: x_a2_star
No scalar found for key: x_b1_star
No scalar found for key: x_b2_star

Gains from trade

Trade leaves both agents weakly better off — that is the content of individual rationality. Compare the utility each agent had at their endowment to the utility they reach at the Walrasian allocation.

No scalar found for key: utility_a_initial
No scalar found for key: utility_a_equilibrium
No scalar found for key: utility_b_initial
No scalar found for key: utility_b_equilibrium