Mathematics for Economists

(Greg DeLong) #1

InÖnite cake eating problem


If

α =




1 β^1 /σ


λ = 1 β^1 /σ

then

1 β^1 /σ


=




1 β^1 /σ

( 1 σ)




1 β^1 /σ


β(^1 σ)/σ=

=




1 β^1 /σ

( 1 σ)
+




1 β^1 /σ


β^1 /σ=

=




1 β^1 /σ

σ
1 β^1 /σ+β^1 /σ




hence(α,λ)solves the equation.
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