Editing Edgeworth's limit theorem (section)

===Trade without competition===
[[Image:Edgeworthprocess1.svg|thumb|Figure 1 - An Edgeworth box showing exchange between two people.<ref name=creedy>{{Cite book |last=Creedy |first=John |title=Development of the Theory of Exchange |year=1999}}</ref>]]
If trade in two [[good (economics)|goods]], X and Y, occurs between a single pair of [[merchant|trader]]s, A and B, the potential outcomes of this trade can be shown in an Edgeworth box (''Figure 1''). In this diagram A and B initially possess the entire stock of X and Y respectively (point E). The lines U(a) and U(b) are the [[indifference curve]]s of A and B which run through points representing combinations of goods which give [[utility]] equal to their initial holdings. As trade here is assumed to be non-coercive, neither of the traders will agree to a final settlement which leaves them worse off than they started off and thus U(a) and U(b) represent the outer boundaries of possible settlements. Edgeworth demonstrated that traders will ultimately reach a point on the [[contract curve]] (between C and C') through a stylized bargaining process which is termed the [[recontracting process]]. As neither person can be made better off without the other being made worse off at points on the contract curve, once the traders agree to settle at a point on it, this is a final settlement. Exactly where the final settlement will be on the contract curve cannot be determined. It will depend on the bargaining process between the two people; the party who is able to obtain an advantage while bargaining will be able to obtain a better price for his or her goods and thus receive the higher [[gains from trade]].

This was Edgeworth's key finding - the result of trade between two people can be predicted within a certain range but the exact outcome is indeterminate.