The Endowment allocation More generally
More generally, … The Endowment Allocation
The Endowment allocation B B The 2 endowment allocation A
The Endowment Allocation OA OB The endowment allocation 1 1 A B + 2 A 2 2 A B + 1 A 1 B 2 B
Other Feasible allocations (x1, x2)denotes an allocation to consumer a (x1, x2) denotes an allocation to consumer B An allocation is feasible if and only if B X1+X≤1+OT B andx2+x2≤2+o2
Other Feasible Allocations denotes an allocation to consumer A. denotes an allocation to consumer B. An allocation is feasible if and only if (x ,x ) A A 1 2 (x ,x ) B B 1 2 x x A B A B 1 + 1 1 + 1 x x A B A B 2 + 2 2 + 2 and
Feasible reallocations
Feasible Reallocations OA OB 1 1 A B + x A 2 2 2 A B + x A 1 x B 1 x B 2
Feasible reallocations
Feasible Reallocations OA OB 1 1 A B + x A 2 2 2 A B + x A 1 x B 1 x B 2