Can weak substitution be rehabilitated?

V. Kerry Smith, Mary F. Evans, H. Spencer Banzhaf, Christine Poulos

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This paper develops a graphical analysis and an analytical model that demonstrate how weak substitution can be used for non-market valuation. Weak complementarity and weak substitution represent preference restrictions that allow us to develop equivalent price changes to describe quantity or quality changes in non-market goods. The price changes are Hicksian equivalents in that they yield the same utility changes as would the quantity or quality changes. After discussion of several potential applications of weak substitution, the paper develops the parallel between the restriction and recent strategies from modeling differentiated goods.

Original languageEnglish (US)
Pages (from-to)203-221
Number of pages19
JournalEnvironmental and Resource Economics
Volume45
Issue number2
DOIs
StatePublished - Feb 2010

Fingerprint

substitution
Substitution reactions
complementarity
valuation
Analytical models
modeling
Substitution
price
goods
Price changes
analysis
Analytical model
Non-market valuation
Modeling
Weak complementarity

Keywords

  • Non-market valuation
  • Revealed preference
  • Weak substitution

ASJC Scopus subject areas

  • Management, Monitoring, Policy and Law
  • Aerospace Engineering

Cite this

Kerry Smith, V., Evans, M. F., Spencer Banzhaf, H., & Poulos, C. (2010). Can weak substitution be rehabilitated? Environmental and Resource Economics, 45(2), 203-221. https://doi.org/10.1007/s10640-009-9312-6

Can weak substitution be rehabilitated? / Kerry Smith, V.; Evans, Mary F.; Spencer Banzhaf, H.; Poulos, Christine.

In: Environmental and Resource Economics, Vol. 45, No. 2, 02.2010, p. 203-221.

Research output: Contribution to journalArticle

Kerry Smith, V, Evans, MF, Spencer Banzhaf, H & Poulos, C 2010, 'Can weak substitution be rehabilitated?', Environmental and Resource Economics, vol. 45, no. 2, pp. 203-221. https://doi.org/10.1007/s10640-009-9312-6
Kerry Smith V, Evans MF, Spencer Banzhaf H, Poulos C. Can weak substitution be rehabilitated? Environmental and Resource Economics. 2010 Feb;45(2):203-221. https://doi.org/10.1007/s10640-009-9312-6
Kerry Smith, V. ; Evans, Mary F. ; Spencer Banzhaf, H. ; Poulos, Christine. / Can weak substitution be rehabilitated?. In: Environmental and Resource Economics. 2010 ; Vol. 45, No. 2. pp. 203-221.
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