Some time ago, I mentioned the idea [1] that maximum entropy could select a particular Arrow-Debreu equilibrium when there are many available; I thought I'd work through a specific example where that could work using a simple 2D Edgeworth box.
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Using maximum entropy to select one of…
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Some time ago, I mentioned the idea [1] that maximum entropy could select a particular Arrow-Debreu equilibrium when there are many available; I thought I'd work through a specific example where that could work using a simple 2D Edgeworth box.