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English: Diagram illustrates the equilibria solutions of Edgeworth's trading game with two parties (Jane and Kevin) and two commodities (apples and bananas). For given initial allocation of commodities between Jane and Kevin, and a given set of indifference curves, any point that is a tangency point between two indifference curves of different colors (dotted gray line) and lies between the pair of indifference curves passing through the initial allocation can be an equilibrium point. In this case, Jane initially has more bananas than applies, while Kevin has more apples than bananas. Through a series of bargins (thin black arrows), Jane and Kevin trade until neight can improve their position further.
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Author Uscitizenjason

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Diagram illustrating Edgeworth's contract line theory.

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9 May 2025

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current23:21, 9 May 2025Thumbnail for version as of 23:21, 9 May 2025589 × 450 (75 KB)UscitizenjasonUploaded own work with UploadWizard

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