Demand-flow of agents with gross-substitute valuations

Research output: Contribution to journalArticlepeer-review


We consider the gross-substitute (GS) condition introduced by Kelso and Crawford (1982). 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 is equivalent to a much stronger condition, describing the demand-flow in the general scenario in which all prices may change: the demand of GS agents always flows (weakly) downwards, i.e., from items with higher price-increase to items with lower price-increase.

Original languageEnglish
Pages (from-to)757-760
Number of pages4
JournalOperations Research Letters
Issue number6
StatePublished - 1 Nov 2016


  • Demand
  • Gross substitutes
  • Indivisible items
  • Utility functions

All Science Journal Classification (ASJC) codes

  • Software
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering
  • Applied Mathematics


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