Demand-flow of agents with gross-substitute valuations

DOI10.1016/J.ORL.2016.09.012MaRDI QIDQ1709953zbMATH OpenOpenAlexFDO

Authors Erel Segal-Halevi, Avinatan Hassidim, Yonatan Aumann

Publication date 15 January 2019

Published in Operations Research Letters (Search for Journal in Brave)

Full work available at URL https://arxiv.org/abs/1607.01989

zbMATH Keywords

demandutility functionsgross substitutesindivisible items

Mathematics Subject Classification ID

Auctions, bargaining, bidding and selling, and other market models (91B26) Utility theory (91B16) Consumer behavior, demand theory (91B42)

Abstract: We consider the class of valuations on indivisible items called gross-substitute (GS). This class was introduced by Kelso and Crawford (1982) and is widely used in studies of markets with indivisibilities. GS is a condition on the demand-flow in a specific scenario: some items become more expensive while other items retain their price. We prove that GS implies a much stronger condition, describing the demand-flow in the general scenario in which all prices may change. We prove that the demand of GS agents always flows (weakly) downwards, i.e, from items with higher price-increase to items with lower price-increase. We show that this property is equivalent to GS and is not true when there are complementarities.

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Cites work

• scientific article; zbMATH DE number 477584 (Why is no real title available?)
• A Note on Kelso and Crawford's Gross Substitutes Condition
• Algorithmic Game Theory
• Gross substitutes and endowed assignment valuations
• Job Matching, Coalition Formation, and Gross Substitutes
• SBBA: a strongly-budget-balanced double-auction mechanism
• The English auction with differentiated commodities
• Walrasian equilibrium with gross substitutes

Cited in

(1)

• GROSS SUBSTITUTES CONDITION AND DISCRETE CONCAVITY FOR MULTI-UNIT VALUATIONS: A SURVEY

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