Seminar: Stochastic Complementarity
When:
—
Venue:
Birkbeck Main Building, Malet Street
No booking required
Hosted by the Department of Economics, Mathematics and Statistics.
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.
Contact name:
Ian Munro