Abstract
We derive sufficient conditions for the existence of multiple equilibria in two-good, two-agent pure exchange economies with heterogeneous but symmetric preferences with identical Bernoulli utilities. When preferences are non-homothetic (for example, quadratic, quasi-linear, or HARA), multiple equilibria are possible even with identical endowments.
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Toda, A.A., Walsh, K.J. Edgeworth box economies with multiple equilibria. Econ Theory Bull 5, 65–80 (2017). https://doi.org/10.1007/s40505-016-0102-3
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DOI: https://doi.org/10.1007/s40505-016-0102-3