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When an increase in output by one firm raises the marginal revenues of the other firms, production decisions are strategic complements. When an increase in output by one firm lowers the marginal revenues of the other firms, production decisions are strategic substitutes. A supermodular utility function is often related to complementary goods ...
Contrary to complementary goods and independent goods, substitute goods may replace each other in use due to changing economic conditions. [2] An example of substitute goods is Coca-Cola and Pepsi; the interchangeable aspect of these goods is due to the similarity of the purpose they serve, i.e. fulfilling customers' desire for a soft drink ...
Goods considered complements or substitutes are relative associations and should not be understood in a vacuum. The degree to which a good is a substitute or a complement depends on its relationship to other goods, rather than an intrinsic characteristic, and can be measured as cross elasticity of demand by employing statistical techniques such ...
In auction theory and competitive equilibrium theory, a valuation function is said to have the gross substitutes (GS) property if for all pairs of commodities: () (). I.e., the definition includes both substitute goods and independent goods , and only rules out complementary goods .
Two Indiana parents are in custody after allegedly leaving their 2-year-old daughter in a closet overnight with a space heater turned all the way up.
LONDON (Reuters) -A man has been charged with a bomb hoax after an incident outside the United States Embassy in London last week, British police said on Monday. Daniel Parmenter, 43, who has been ...
< implies two goods are complements. Consumers purchase less B when the price of A increases. Consumers purchase less B when the price of A increases. Example: the cross elasticity of demand of entertainment with respect to food is −0.72, so 1% increase in the price of food will decrease the demand for entertainment by 0.72%.
PDA pics of Mauricio Umansky and Klaudia K emerged, but Kyle Richards' estranged husband is reportedly not looking for "anything serious" with the model.