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Business, 08.04.2021 21:10 ae02705

Tom and Wilson find themselves stranded on a desert island. To survive, they make fires with sticks and eat fish. Let Tomâs allocation of sticks and fish be denoted by (sT , fT ) and Wilsonâs by (sW , fW ). Their utility functions are uT (sT , fT ) = sa_T f1^âa T and uW (sW , fW ) = sbW f1^âbW for some numbers a and b between zero and one. Suppose the total number of sticks is s = sT + sW and fish is f = fT + fW.

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Find the formula for the contract curve.

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Tom and Wilson find themselves stranded on a desert island. To survive, they make fires with sticks...

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