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Asymmetric substitutability: theory and some applications

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  • K.J.M. De Jaegher

Abstract

Economists usually describe goods as being either (gross) complements or (gross) substitutes. Yet, what is less known is that one good may be a gross substitute for a second good, while the second good is a gross complement to the first good. This paper shows the existence of asymmetric gross substitutability, and shows some potential examples and applications.

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File URL: http://dspace.library.uu.nl/bitstream/handle/1874/31442/08-02.pdf
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Bibliographic Info

Paper provided by Utrecht School of Economics in its series Working Papers with number 08-02.

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Length: 24 pages
Date of creation: 2008
Date of revision:
Handle: RePEc:use:tkiwps:0802

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Keywords: asymmetric substitutability; consumer theory;

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  1. Raj Sethuraman & V. Srinivasan & Doyle Kim, 1999. "Asymmetric and Neighborhood Cross-Price Effects: Some Empirical Generalizations," Marketing Science, INFORMS, vol. 18(1), pages 23-41.
  2. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
  3. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  4. Garbacz, Christopher & Thompson Jr, Herbert G., 2007. "Demand for telecommunication services in developing countries," Telecommunications Policy, Elsevier, vol. 31(5), pages 276-289, June.
  5. K.J.M. De Jaegher, 2007. "Benchmark two-good utility functions," Working Papers 07-09, Utrecht School of Economics.
  6. Jean-S├ębastien Lenfant, 2006. "Complementarity and Demand Theory: From the 1920s to the 1940s," History of Political Economy, Duke University Press, vol. 38(5), pages 48-85, Supplemen.
  7. Cadima, Nuno & Pita Barros, Pedro Luis, 2000. "The Impact of Mobile Phone Diffusion on the Fixed-Link Network," CEPR Discussion Papers 2598, C.E.P.R. Discussion Papers.
  8. Azariadis, Costas, 1976. "On the Incidence of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 43(1), pages 115-25, February.
  9. George J. Stigler, 1947. "Notes on the History of the Giffen Paradox," Journal of Political Economy, University of Chicago Press, vol. 55, pages 152.
  10. Greg M. Allenby & Peter E. Rossi, 1991. "Quality Perceptions and Asymmetric Switching Between Brands," Marketing Science, INFORMS, vol. 10(3), pages 185-204.
  11. Duncan CAMPBELL, 2001. "Can the digital divide be contained?," International Labour Review, International Labour Organization, vol. 140(2), pages 119-141, 06.
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Cited by:
  1. Andrikopoulos, Athanasios & Markellos, Raphael. N, 2012. "Dynamic interaction between markets for leasing and selling automobiles," MPRA Paper 45225, University Library of Munich, Germany.
  2. Banerjee, Dyuti S. & Chatterjee, Ishita, 2014. "Exploring Stackelberg profit ordering under asymmetric product differentiation," Economic Modelling, Elsevier, vol. 36(C), pages 309-315.
  3. K.J.M. De Jaegher, 2010. "Giffen Behaviour and Asymmetric Substitutability," Working Papers 10-16, Utrecht School of Economics.

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