Verifying gross substitutability

In labor market models as well as in exchange economies with indivisible goods gross substitutability is used as a property to guarantee the existence of competitive equilibria. This paper develops an easy way to check gross substitutability for utility functions concerning a finite set of indivisible goods (or employees) and money. Concavity is one of the conditions that has to be satisfied. Only one other, but similar, type of relation must be checked to guarantee gross substitutability.

MoreLess

Year of publication:	2002-03-21
Authors:	Potters, Jos A.M. ; Gellekom, Anita van ; Reijnierse, Hans
Published in:	Economic Theory. - Springer. - Vol. 20.2002, 4, p. 767-776
Publisher:	Springer
Subject:	Gross substitutability \| Competitive equilibrium \| Labor market \| Exchange economies with indivisible goods

freely available

Full text |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Extent:	application/pdf
Type of publication:	Article
Notes:	Received: 21 August 2000; revised version: 28 November 2001
Classification:	C62 - Existence and Stability Conditions of Equilibrium ; C63 - Computational Techniques ; J40 - Particular Labor Markets. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005370930