Dear professor! In 3 days I have midterm exam for microeconomics theory, and find your lectures really captivating and interesting! After them I understand much much more! Thank you for your great explanations! çok teşekkürler
The contract curve is not the same as the set of PO allocations. The black line represents the entire set of PO allocations. The contract curve is a part of that line, specifically the PO allocations that could be reached through trade starting from the initial endowment, and these typically improve both individuals compared to autarky.
Some define contract curve in the same way you define. However, most textbooks (including the ones I follow in my courses, e.g., Varian) define contract curve as the set of all Pareto efficient allocations. The set of allocations that you call “contract curve” is in fact nothing but the “core” of an exchange economy. Anyways, getting into a discussion about semantics is not fruitful. The true definition is always the one that your instructor or textbook uses. So, if your instructor uses this definition, then you should go for it. Hope that helps…
![(M8E6) [Microeconomics] Finding Pareto Efficient Allocations and Contract Curve: Numerical Examples](http://i.ytimg.com/vi/zeS20vZ6BKo/mqdefault.jpg)
![(M8E6) [Microeconomics] Finding Pareto Efficient Allocations and Contract Curve: Numerical Examples](/img/tr.png)
![(M8E7) [Microeconomics] How to Find Core Allocations?](http://i.ytimg.com/vi/6AsVOggHL-4/mqdefault.jpg)
Dear professor! In 3 days I have midterm exam for microeconomics theory, and find your lectures really captivating and interesting! After them I understand much much more! Thank you for your great explanations! çok teşekkürler
Brilliant stuff, Professor, thank you!
Increadible good teaching, thank you!!
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Very good quality videos
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hocam elinize kolunuza sağlık çok teşekkürler
Great video! Thank you
WOW THIS IS SO CLEAR
Great video
çok teşekkürler hocam, sağ olun
you are great!
The contract curve is not the same as the set of PO allocations. The black line represents the entire set of PO allocations. The contract curve is a part of that line, specifically the PO allocations that could be reached through trade starting from the initial endowment, and these typically improve both individuals compared to autarky.
Some define contract curve in the same way you define. However, most textbooks (including the ones I follow in my courses, e.g., Varian) define contract curve as the set of all Pareto efficient allocations. The set of allocations that you call “contract curve” is in fact nothing but the “core” of an exchange economy. Anyways, getting into a discussion about semantics is not fruitful. The true definition is always the one that your instructor or textbook uses. So, if your instructor uses this definition, then you should go for it. Hope that helps…
Now how do u find the function if the contract curve, isoquants and equilibrium are lready known