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Asymmetric substitutability: theory and some applications

  • K. de Jaegher

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/1874/309529/08_02.pdf
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Paper provided by Utrecht School of Economics in its series Working Papers with number 08-02.

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Date of creation: Jan 2008
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Handle: RePEc:use:tkiwps:0802
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  1. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  2. 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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  4. K.J.M. De Jaegher, 2007. "Benchmark two-good utility functions," Working Papers 07-09, Utrecht School of Economics.
  5. Garbacz, Christopher & Thompson Jr, Herbert G., 2007. "Demand for telecommunication services in developing countries," Telecommunications Policy, Elsevier, vol. 31(5), pages 276-289, June.
  6. 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.
  7. 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.
  8. Greg M. Allenby & Peter E. Rossi, 1991. "Quality Perceptions and Asymmetric Switching Between Brands," Marketing Science, INFORMS, vol. 10(3), pages 185-204.
  9. Azariadis, Costas, 1976. "On the Incidence of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 43(1), pages 115-25, February.
  10. 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.
  11. George J. Stigler, 1947. "Notes on the History of the Giffen Paradox," Journal of Political Economy, University of Chicago Press, vol. 55, pages 152.
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