Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/122068
Authors: 
Manzini, Paola
Mariotti, Marco
Ulkti, Levent
Year of Publication: 
2015
Series/Report no.: 
Working Paper, School of Economics and Finance, Queen Mary, University of London 745
Abstract: 
Classical definitions 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 conflict between properties that complementarity should intuitively possess. We discuss three ways out of the impossibility.
Subjects: 
Complements and substitutes
Correlation
Stochastic choice
JEL: 
D0
Document Type: 
Working Paper

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