Panel A shows the Katz-Murphy model where workers have orthogonal skill endowments, \((x(i),0)\) or \((0,y(i))\), so the feasible set \(\mathcal{B}\) equals the full Edgeworth box \(\mathcal{E}\) and the equilibrium is always unbundled. Panel B shows the Roy model where the contract curve consists of the bottom and right edges of the box and the equilibrium is always bundled. The lens \(\mathcal{B}\) in Panel B uses independent Fréchet marginals with shape parameter \(\theta=2\).
In the paper: Figure 5. Special cases: Katz-Murphy and Roy.