Verifying gross substitutability
AbstractIn 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.
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Bibliographic InfoArticle provided by Springer in its journal Economic Theory.
Volume (Year): 20 (2002)
Issue (Month): 4 ()
Note: Received: 21 August 2000; revised version: 28 November 2001
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Find related papers by JEL classification:
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
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- Paul Milgrom, 2003.
"Matching with Contracts,"
03003, Stanford University, Department of Economics.
- Hatfield, John William & Immorlica, Nicole & Kominers, Scott Duke, 2012. "Testing substitutability," Games and Economic Behavior, Elsevier, vol. 75(2), pages 639-645.
- Goossens, D.R. & Müller, R. & Spieksma, F.C.R., 2007. "Matrix bids in combinatorial auctions: expressiveness and micro-economic properties," Research Memorandum 016, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
- Yang, Yi-You, 2013. "A classification approach to Walrasian equilibrium with substitutability," MPRA Paper 47945, University Library of Munich, Germany.
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