New research reveals key to ensuring economic stability in two-good societies.
The paper shows how different levels of patience and initial possessions can lead to a unique balance in an economy with two goods. By looking at specific conditions in a utility function, the researchers found that equilibrium can be guaranteed regardless of the value of a certain parameter. This study adds to existing knowledge about how economies with two goods and two types of people can reach a stable state, building on previous research in the field.