Edgeworth Box

Definitions

Economics

  • noun
    (written as Edgeworth box)
    a diagram devised by F. Y. Edgeworth, in the form of a box which plots the indifference curves of two individuals or firms relative to the consumption or production of two goods. The contract curve plotted shows the points where the utility to the two individuals or firms is equal.

Health Economics

  • Named after the Oxford economist Francis Ysidro Edgeworth (1845-1926), this is a diagram showing the possible allocations of given quantities of two goods between two people and how, given conventional assumptions about their preferences, they can achieve a Pareto-optimal distribution of the goods between them from any initial starting distribution. Sometimes called simply ' box diagram '.
  • synonymBox Diagram
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