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June 27th, 2019, 01:05 PM  #1 
Newbie Joined: Jun 2019 From: algeirs Posts: 2 Thanks: 0  3 goods edgeworth box / tangency of 2 paraboles
Hi, In the edgworth box you find the pareto optimal distribution of 2 goods (x and y) by finding the tangency points of the curves of the marginal rates of substitution (MRS) for 2 agents a and b: MRSa = MRSb dxa / dya = dxb / dxb I want to modelize the same for the distribution of 3 goods between 2 agents. This implies the MRS become paraboles instead of curves and i now need to find the points of tangency of 2 paraboles. How do you find the points of tangency for 2 paraboles ? Thanks for your help. 

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