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Edgeworth-Bowley Box |
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Edgeworth-Bowley BoxA geometric device showing allocations of 2 goods to 2 consumers in a rectangle with dimensions equal to the quantities of the goods. Preferences enter as indifference curves relative to opposite corners of the box, tangencies defining efficient allocations and the contract curve. First drawn by Pareto (1906), based originally, though only partially, on a diagram of Edgeworth (1881). This and the Edgeworth production box are often called just the Edgeworth Box, even though Edgeworth never drew either.Similar MatchesEdgeworth BoxEdgeworth BoxSee Edgeworth-Bowley Box and Edgeworth production box. Edgeworth Production BoxEdgeworth Production BoxA variation of the consumption Edgeworth Box that instead represents the allocations of 2 factors to 2 industries for use in production functions. Efficient allocations now appear as tangencies between isoquants, while the contract curve becomes the efficiency locus. |
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