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Complements and substitutes in a dynamic consumption-asset economy: A laboratory experiment.
- Source :
- Discrete & Continuous Dynamical Systems - Series S; Sep2023, Vol. 16 Issue 9, p1-38, 38p
- Publication Year :
- 2023
-
Abstract
- We examine a general equilibrium model with an asset and consumption good with specific steady-state competitive equilibrium properties. Two specific environments are considered in our modeling: the asset is a substitute (the asset can be immediately consumed or stored for later use) or a complement (the asset is not for immediate consumption but produces consumption goods in later periods). We test our model through a series of market experiments. We find that markets help extract a large amount of the surplus. However, markets do not realize the full surplus due to over-trading in the asset market, especially when the asset is a substitute. [ABSTRACT FROM AUTHOR]
- Subjects :
- BOUSSINESQ equations
CONSUMPTION (Economics)
Subjects
Details
- Language :
- English
- ISSN :
- 19371632
- Volume :
- 16
- Issue :
- 9
- Database :
- Complementary Index
- Journal :
- Discrete & Continuous Dynamical Systems - Series S
- Publication Type :
- Academic Journal
- Accession number :
- 172046121
- Full Text :
- https://doi.org/10.3934/dcdss.2023142