(1)(2)real interest factor real discount factor here C1 is nimeraire: (3)(4)(5)COMPETITIVE PURE-EXCHANGE ECONOMY 2 agents: endowments find competitive-equilibroum price x = good 1

real interest factor

real discount factor

here C1 is nimeraire:

COMPETITIVE PURE-EXCHANGE ECONOMY

2 agents: endowments

find competitive-equilibroum price x = good 1; y = good 2

PURE ECHANGE ECONOMY with 2 agents A, B

endowments: preferences

to W?

Find contract curve of the pure exchange ecomomy described by:

The red staright line in Edgeworth box with slope 3/4 is the contract curve of this economy