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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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