北大微观经济学课件英文版

2020/2/16中级微观经济学ChapterTwenty-NineExchange2020/2/16中级微观经济学ExchangeTwoconsumers,AandB.Theirendowmentsofgoods1and2areE.g.ThetotalquantitiesavailableAAA(,)12BBB(,).12andA(,)64B(,).22and11628AB22426ABunitsofgood1unitsofgood2.andare2020/2/16中级微观经济学ExchangeEdgeworthandBowleydevisedadiagram,calledanEdgeworthbox,toshowallpossibleallocationsoftheavailablequantitiesofgoods1and2betweenthetwoconsumers.2020/2/16中级微观经济学StartinganEdgeworthBox2020/2/16中级微观经济学StartinganEdgeworthBoxWidth=11628AB2020/2/16中级微观经济学StartinganEdgeworthBoxWidth=11628ABHeight=22426AB2020/2/16中级微观经济学StartinganEdgeworthBoxWidth=11628ABHeight=22426ABThedimensionsoftheboxarethequantitiesavailableofthegoods.2020/2/16中级微观经济学FeasibleAllocationsWhatallocationsofthe8unitsofgood1andthe6unitsofgood2arefeasible?HowcanallofthefeasibleallocationsbedepictedbytheEdgeworthboxdiagram?2020/2/16中级微观经济学FeasibleAllocationsWhatallocationsofthe8unitsofgood1andthe6unitsofgood2arefeasible?HowcanallofthefeasibleallocationsbedepictedbytheEdgeworthboxdiagram?Onefeasibleallocationisthebefore-tradeallocation;i.e.theendowmentallocation.2020/2/16中级微观经济学Width=11628ABHeight=22426ABTheendowmentallocationisA(,)64B(,).22andTheEndowmentAllocation2020/2/16中级微观经济学Width=11628ABHeight=22426ABA(,)64B(,)22TheEndowmentAllocation2020/2/16中级微观经济学A(,)64OAOB68B(,)22TheEndowmentAllocation2020/2/16中级微观经济学A(,)64OAOB6846TheEndowmentAllocation2020/2/16中级微观经济学B(,)22OAOB684622TheEndowmentAllocation2020/2/16中级微观经济学A(,)64B(,)22OAOB684622TheendowmentallocationTheEndowmentAllocation2020/2/16中级微观经济学Moregenerally,…TheEndowmentAllocation2020/2/16中级微观经济学TheEndowmentAllocationOAOBTheendowmentallocation11AB2A22AB1A1B2B2020/2/16中级微观经济学OtherFeasibleAllocationsdenotesanallocationtoconsumerA.denotesanallocationtoconsumerB.Anallocationisfeasibleifandonlyif(,)xxAA12(,)xxBB12xxABAB1111xxABAB2222.and2020/2/16中级微观经济学FeasibleReallocationsOAOB11ABxA222ABxA1xB1xB22020/2/16中级微观经济学FeasibleReallocationsOAOB11ABxA222ABxA1xB1xB22020/2/16中级微观经济学FeasibleReallocationsAllpointsinthebox,includingtheboundary,representfeasibleallocationsofthecombinedendowments.2020/2/16中级微观经济学FeasibleReallocationsAllpointsinthebox,includingtheboundary,representfeasibleallocationsofthecombinedendowments.Whichallocationswillbeblockedbyoneorbothconsumers?Whichallocationsmakebothconsumersbetteroff?2020/2/16中级微观经济学AddingPreferencestotheBox2A1AxA2xA1OAForconsumerA.2020/2/16中级微观经济学AddingPreferencestotheBox2A1AxA2xA1ForconsumerA.OA2020/2/16中级微观经济学AddingPreferencestotheBox2B1BxB2xB1ForconsumerB.OB2020/2/16中级微观经济学AddingPreferencestotheBoxxB2xB1ForconsumerB.OB2B1B2020/2/16中级微观经济学AddingPreferencestotheBox2B1BxB1xB2ForconsumerB.OB2020/2/16中级微观经济学AddingPreferencestotheBox2A1AxA2xA1OAForconsumerA.2020/2/16中级微观经济学AddingPreferencestotheBox2A1AxA2xA1OA2B1BxB1xB2OB2020/2/16中级微观经济学Edgeworth’sBox2A1AxA2xA1OA2B1BxB1xB2OB2020/2/16中级微观经济学Pareto-ImprovementAnallocationoftheendowmentthatimprovesthewelfareofaconsumerwithoutreducingthewelfareofanotherisaPareto-improvingallocation.WherearethePareto-improvingallocations?2020/2/16中级微观经济学Edgeworth’sBox2A1AxA2xA1OA2B1BxB1xB2OB2020/2/16中级微观经济学Pareto-Improvements2A1AxA2xA1OA2B1BxB1xB2OBThesetofPareto-improvingallocations2020/2/16中级微观经济学Pareto-ImprovementsSinceeachconsumercanrefusetotrade,theonlypossibleoutcomesfromexchangearePareto-improvingallocations.ButwhichparticularPareto-improvingallocationwillbetheoutcomeoftrade?2020/2/16中级微观经济学Pareto-Improvements2A1AxA2xA1OA2B1BxB1xB2OBThesetofPareto-improvingreallocations2020/2/16中级微观经济学Pareto-Improvements2020/2/16中级微观经济学Pareto-Improvements2020/2/16中级微观经济学Pareto-ImprovementsTradeimprovesbothA’sandB’swelfares.ThisisaPareto-improvementovertheendowmentallocation.2020/2/16中级微观经济学Pareto-ImprovementsNewmutualgains-to-traderegionisthesetofallfurtherPareto-improvingreallocations.TradeimprovesbothA’sandB’swelfares.ThisisaPareto-improvementovertheendowmentallocation.2020/2/16中级微观经济学Pareto-ImprovementsFurthertradecannotimprovebothAandB’swelfares.2020/2/16中级微观经济学Pareto-OptimalityBetterforconsumerBBetterforconsumerA2020/2/16中级微观经济学Pareto-OptimalityAisstrictlybetteroffbutBisstrictlyworseoff2020/2/16中级微观经济学Pareto-OptimalityAisstrictlybetteroffbutBisstrictlyworseoffBisstrictlybetteroffbutAisstrictlyworseoff2020/2/16中级微观经济学Pareto-OptimalityAisstrictlybetteroffbutBisstrictlyworseoffBisstrictlybetteroffbutAisstrictlyworseoffBothAandBareworseoff2020/2/16中级微观经济学Pareto-OptimalityAisstrictlybetteroffbutBisstrictlyworseoffBisstrictlybetteroffbutAisstrictlyworseoffBothAandBareworseoffBothAandBareworseoff2020/2/16中级微观经济学Pareto-OptimalityTheallocationisPareto-optimalsincetheonlywayoneconsumer’swelfarecanbeincreasedistodecreasethewelfareoftheotherconsumer.2020/2/16中级微观经济学Pareto-OptimalityTheallocationisPareto-optimalsincetheonlywayoneconsumer’swelfarecanbeincreasedistodecreasethewelfareoftheotherconsumer.Anallocationwhereconvexindifferencecurves