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all right so lets uh look at this example a simple example so agent a and b initial endowments are two good one for agent a and three good two for agent b so there are total two good one to be good too so the predator optimal im sorry the edgeworth box would be a two by three uh uh sort of a square um im sorry rectangle so what about the preferences of these individuals lets suppose for simplicity both agent has a cop douglas utility function of this form well obviously here im just saying that their utility functional forms are the same but everybody cares about his or her own consumption all right so be careful about it well question is what is the set of efficient allocations or what is the contract curve well again you have to use because those utility functions do have nice indifference curves so you have to equate margin rate of substitution of agent a with margin rate of substitution of agent b all right well because the utility functions have the same format margin rate o
