stochasticcomplementarityEJFinalFULL.pdf (313.21 kB)
Stochastic complementarity
journal contribution
posted on 2023-06-09, 11:47 authored by Paola Manzini, Marco Mariotti, Levent ÜlküThe Hicksian definition of complementarity and substitutability may not apply in contexts in which agents are not utility maximisers or where price or income vari- ations, whether implicit or explicit, are not available. We look for tools to identify complementarity and substitutability satisfying the following criteria: they are be- havioural (based only on observable choice data); model-free (valid whether the agent is rational or not); and they do not rely on price or income variation. We uncover a conflict between properties that it is arguably reasonable for a complementarity notion to possess. We discuss three different possible resolutions of the conflict.
History
Publication status
- Published
File Version
- Accepted version
Journal
Economic JournalISSN
0013-0133Publisher
WileyExternal DOI
Issue
619Volume
129Page range
1343-1363Department affiliated with
- Economics Publications
Full text available
- Yes
Peer reviewed?
- Yes