Mathematics for Economists

(Greg DeLong) #1

InÖnite cake eating problem


Substituting back

αw

1 σ
1 σ

= (λw)

1 σ
1 σ

+ βα
1 σ((

1 λ)w)^1 σ

α = λ^1 σ+βα( 1 λ)^1 σ
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