Answers to practice exchange questions

Answers to practice exchange questions - x B =(1 2 p =(1 1...

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VCG mechanism Final Exam Econ 100B recap Exchange Practice Exchange Questions: Answers Suppose that A has an initial endowment of ω A = (0 , 3) and B is endowed with ω B = (3 , 0). Find the competitive equilibrium prices and allocations if: U A = x 2 1 x 2 and U B = x 2 1 x 2 x A = (1 , 1); x B = (2 , 2); p = (2 , 1) U A = x 2 1 x 2 and U B = x 1 x 2 2 x A = (2 , 1);
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Unformatted text preview: x B = (1 , 2); p = (1 , 1) • U A = x 1 x 2 and U B = x 1 + 2 x 2 x A = (3 , 3 / 2); x B = (0 , 3 / 2); p = (1 / 2 , 1) • U A = x 1 x 2 and U B = min { x 1 , 2 x 2 } x A = (0 , 3 / 2); x B = (3 , 3 / 2); p = ( ∞ , 1)...
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This note was uploaded on 12/26/2011 for the course ECON 100B taught by Professor Kilenthong during the Fall '08 term at UCSB.

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