Stochastic Complementarity
The Hicksian definition of complementarity and substitutability may not apply in contexts in which agents are not utility maximisers or where price or income variations, whether implicit or explicit, are not available. We look for tools to identify complementarity and substitutability satisfying the following criteria: they are behavioural (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.
Year of publication: |
2018
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Authors: | Manzini, Paola ; Mariotti, Marco ; Ülkü, Levent |
Publisher: |
Bonn : Institute of Labor Economics (IZA) |
Subject: | complements and substitutes | correlation | stochastic choice |
Saved in:
freely available
Series: | IZA Discussion Papers ; 11296 |
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Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
Other identifiers: | 1014709369 [GVK] hdl:10419/177100 [Handle] RePEc:iza:izadps:dp11296 [RePEc] |
Classification: | D0 - Microeconomics. General |
Source: |
Persistent link: https://www.econbiz.de/10011816568