Stochastic Complementarity

Paola Manzini, Marco Mariotti and Levent Ülkü ()
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Levent Ülkü: Centro de Investigación Económica (CIE), Instituto Tecnológico Autónomo de México (ITAM)

No 1501, Working Papers from Centro de Investigacion Economica, ITAM

Abstract: Classical deÖnitions of complementarity are based on cross price elasticities, and so they do not apply, for example, when goods are free. This context includes many relevant cases such as online newspapers and public attractions. We look for a complementarity notion that does not rely on price variation and that is: behavioural (based only on observable choice data); and model-free (valid whether the agent is rational or not). We uncover a conáict between properties that complementarity should intuitively possess. We discuss three ways out of the impossibility.

Keywords: Complements and substitutes; Correlation; Stochastic choice (search for similar items in EconPapers)
JEL-codes: D0 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2015
New Economics Papers: this item is included in nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://ftp.itam.mx/pub/academico/inves/ulku/15-01.pdf (application/pdf)

Related works:
Journal Article: Stochastic Complementarity (2019)
Working Paper: Stochastic Complementarity (2018)
Working Paper: Stochastic Complementarity (2015)
Working Paper: Stochastic Complementarity (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:cie:wpaper:1501

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