stochasticcomplementarityEJFinalFULL.pdf (313.21 kB)
journal contributionposted on 2023-06-09, 11:47 authored by Paola Manzini, Marco Mariotti, Levent Ülkü
The 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.
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- Economics Publications
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