Is the Coeffecient of Cross Elasticity an Appropriate Measure for the Closeness of Substitutes?
AbstractAuthors of price theory texts usually state that the coeffecient of (price) cross elasticity of demand is a measure for the "closeness" of substitutes or complement: for the closeness of substitutes when the sign of the cross elasticity between the two commodities is positive, and for the closeness of compliments when the sign is negative. The main point the author wants to discuss is largely symmetrical for compliments and substitutes and it is more relevant for the latter. He will therefore develop his argument in terms of substitutes.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 36.
Length: 44 pages
Date of creation: Jan 1971
Date of revision:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Babcock).
If references are entirely missing, you can add them using this form.