Stochastic complementarity
Date
04/2019Metadata
Show full item recordAbstract
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.
Citation
Manzini , P , Mariotti , M & Ülkü , L 2019 , ' Stochastic complementarity ' , The Economic Journal , vol. 129 , no. 619 , pp. 1343-1363 . https://doi.org/10.1111/ecoj.12601
Publication
The Economic Journal
Status
Peer reviewed
ISSN
0013-0133Type
Journal article
Rights
Copyright © 2018, Royal Economic Society, published by Wiley. This work is made available online in accordance with the publisher’s policies. This is the author created, accepted version manuscript following peer review and may differ slightly from the final published version. The final published version of this work is available at https://doi.org/10.1111/ecoj.12601
Description
Levent Ulku acknowledges financial sup port from the Asociacion Mexicana de Cultura.Collections
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