Full substitutability

Artikel

Various forms of substitutability are essential for establishing the existence of equilibria and other useful properties in diverse settings such as matching, auctions, and exchange economies with indivisible goods. We extend earlier models' definitions of substitutability to settings in which each agent can be both a buyer in some transactions and a seller in others, and show that all these definitions are equivalent. We then introduce a new class of substitutable preferences that allows us to model intermediaries with production capacity. We also prove that substitutability is preserved under economically important transformations such as trade endowments, mergers, and limited liability.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Theoretical Economics ; ISSN: 1555-7561 ; Volume: 14 ; Year: 2019 ; Issue: 4 ; Pages: 1535-1590 ; New Haven, CT: The Econometric Society

Classification and Topics

• Classification: Wirtschaft ; Existence and Stability Conditions of Equilibrium ; Bargaining Theory; Matching Theory ; Auctions ; Market Design
• Subject: Matching with contracts ; substitutability ; trading networks

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hatfield, John William ; Kominers, Scott Duke ; Nichifor, Alexandru ; Ostrovsky, Michael ; Westkamp, Alexander
• Event: Veröffentlichung
• (who): The Econometric Society
• (where): New Haven, CT
• (when): 2019

Further information

• DOI: doi:10.3982/TE3240
• Handle: http://hdl.handle.net/10419/217097
• Last update: 10.03.2025, 11:41 AM CET