Question: For the dynamic Arrow-Hurwicz model in a discrete-time version from Exercise 4 with subadditive utility functions of traders and the Walrasian equilibrium price vector known

For the dynamic Arrow-Hurwicz model in a discrete-time version from Exercise 4 with subadditive utility functions of traders and the Walrasian equilibrium price vector known from Exercise 2 determine a feasible price trajectory for a few subsequent periods taking some value of parameter Present a geometric illustration of this trajectory in the state space and in the phase space.

Exercise 2

There is given a market of two traders and two goods described by the static Arrow-Hurwicz model, in which: image text in transcribed

Oi = 0> 0.

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