Journal
ECONOMICS LETTERS
Volume 226, Issue -, Pages -Publisher
ELSEVIER SCIENCE SA
DOI: 10.1016/j.econlet.2023.111106
Keywords
Matching; Equilibrium existence; Gross substitutability; Gross complementarity
Categories
Ask authors/readers for more resources
In a transferable utility matching environment, the gross substitutes condition and the gross complements condition ensure the existence of equilibrium outcomes. The difference lies in the direction of price changes: the former condition requires that any set of demanded contracts is still demanded after the prices of other contracts increase, while the latter condition requires that any set of demanded contracts is still demanded after the prices of other contracts decrease.
In a transferable utility matching environment, the gross substitutes condition (Kelso and Crawford 1982) and the gross complements condition (Rostek and Yodar 2020) guarantee the existence of equilibrium outcomes. We show that the difference between the two conditions is pinpointed to the direction of price changes: the former condition requires that any set of demanded contracts is still demanded after the prices of other contracts increase, while the latter condition requires that any set of demanded contracts is still demanded after the prices of other contracts decrease.(c) 2023 Elsevier B.V. All rights reserved.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available
Share Paper
