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A Shiny app to visualize the Edgeworth box

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    Mauricio “Pachá” Vargas Sepúlveda

    Blog with notes about R, Shiny, SQL, Python, Linux and C++. This blog is listed on R-Bloggers.

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    A Shiny app to visualize the Edgeworth box

    Edgeworth box with contract curve for the 2×2 exchange model using Cobb-Douglas utility functions.
    Author

    Mauricio “Pachá” Vargas S.

    Published

    August 22, 2025

    Because of delays with my scholarship payment, if this post is useful to you I kindly ask a minimal donation on Buy Me a Coffee. It shall be used to continue my Open Source efforts. The full explanation is here: A Personal Message from an Open Source Contributor. If you play the electric guitar, the same scholarship chaos led me to turn my guitar pedals and DIY kits hobby into a business, and you can check those here.

    Update (2025-08-24): I uploaded the app to Shiny Apps for a live demo.

    I made a small Shiny app to visualize an Edgeworth box with contract curve for the 2×2 exchange model using Cobb-Douglas utility functions.

    The idea is that the user can alter the parameters for the Cobb-Douglas functions to see how the contract curve changes and how much the market equilibrium (or Walras’ equilibrium) shifts from the initial allocation.

    The initial endownments for good 1 and 2 and the normalized price can be changed as well.

    Here is a preview:

    To run the app locally, clone the repository https://github.com/pachadotdev/cobbdouglasge and then from RStudio/VSCode run the following in the R console:

    devtools::load_all()
run_app()

    The base for this demonstration was exercise 15.B.2 from MWG.

    I hope this is useful!

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