Quasi-linear peferences with Auspitz-Lieben-Pareto complementarity
I show that if preferences are quasi-linear (non-linear in goods x1, …, xn but linear in xn+1) and the sub-utility function defined over [x1, …, xn] is strongly concave and exhibits Auspitz-Lieben-Pareto complementarity, then goods x1-xn must be gross and compensated complements for each other and xn+1 must be a compensated substitute for all other goods. Also, an increase in its price of xn+1 must reduce the demand for goods x1-xn. The effects of uncompensated changes in the prices of goods x1-xn on the demand for good xn+1 vary predictably with income.
Volume (Year): 4 (2004)
Issue (Month): 12 ()
|Contact details of provider:|| |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chipman, John S., 1977. "An empirical implication of Auspitz-Lieben-Edgeworth-Pareto complementarity," Journal of Economic Theory, Elsevier, vol. 14(1), pages 228-231, February.
- Shi, Shou Yong, 1988. "Rational expectation equilibrium under quasilinear preferences : A diagrammatic approach," Economics Letters, Elsevier, vol. 26(2), pages 107-110.
- Weymark, John A, 1987. "Comparative Static Properties of Optimal Nonlinear Income Taxes," Econometrica, Econometric Society, vol. 55(5), pages 1165-85, September.
- Boylan, Richard T., 1998. "Coalition-Proof Implementation," Journal of Economic Theory, Elsevier, vol. 82(1), pages 132-143, September.
- Liebhafsky, H H, 1969. "New Thoughts About Inferior Goods," American Economic Review, American Economic Association, vol. 59(5), pages 931-34, December.
- Shi, Shou Yong, 1988. "Rothschild-Stiglitz competitive insurance market under quasilinear preferences," Economics Letters, Elsevier, vol. 27(1), pages 27-30.
- Che, Yeon-Koo & Gale, Ian, 2000. "The Optimal Mechanism for Selling to a Budget-Constrained Buyer," Journal of Economic Theory, Elsevier, vol. 92(2), pages 198-233, June.
- Silberberg, Eugene, 1972. "Separability and Complementarity," American Economic Review, American Economic Association, vol. 62(1), pages 196-97, March.
- Christian E. Weber, 2005. "Edgeworth on Complementarity, or Edgeworth, Auspitz-Lieben, and Pareto De-Homogenized," History of Political Economy, Duke University Press, vol. 37(2), pages 293-307, Summer.
- Xavier Vives, 2001. "Oligopoly Pricing: Old Ideas and New Tools," MIT Press Books, The MIT Press, edition 1, volume 1, number 026272040x, March.
- Weber, Christian E., 2000. "Two further empirical implications of Auspitz-Lieben-Edgeworth-Pareto complementarity," Economics Letters, Elsevier, vol. 67(3), pages 289-295, June.
When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-04d10001. See general 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: (John P. Conley)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.