Microeconomics

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5 domain-specific abstractions whose origin domain is Microeconomics.

• Contract curve — The locus of Pareto-efficient allocations in an Edgeworth box where the two consumers’ indifference curves are tangent or a boundary constraint binds.
• Edgeworth Box — Represent every feasible allocation of two fixed goods between two consumers in one reciprocal-coordinate rectangle, then overlay both preference maps to diagnose gains from trade, Pareto efficiency, and competitive equilibrium.
• Leontief utilities — A fixed-proportions utility model in which bundle value is the minimum of each good’s quantity divided by its required coefficient.
• Market distortion — A departure from a declared competitive benchmark that changes prices, quantities or incentives so decentralized choices no longer produce the benchmark allocation.
• Monotone preferences — Preferences under which having weakly more of every good and strictly more of a qualifying good is never worse or is strictly better.