Consider an economy with three consumers and two goods r1 and r2. They all have the...
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Consider an economy with three consumers and two goods r1 and r2. They all have the following utility function u' (ri, 2) = max{r, r}, for i = 1,2,3. All agents have an endowment of 3 units of each good, i.e. e = (3,3), for i = 1, 2, 3. Show that no Walrasian equilibrium exists in this economy (hint: you might want to check the core). Consider an economy with three consumers and two goods r1 and r2. They all have the following utility function u' (ri, 2) = max{r, r}, for i = 1,2,3. All agents have an endowment of 3 units of each good, i.e. e = (3,3), for i = 1, 2, 3. Show that no Walrasian equilibrium exists in this economy (hint: you might want to check the core).
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