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Complementary good

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619: 20: 405: 1379: 1204: 656:. In the case of video games, a specific video game (the complement good) has to be consumed with a video game console (the base good). It does not work the other way: a video game console does not have to be consumed with that game. 807: 648:
Few goods behave as perfect complements. One example is a left shoe and a right; shoes are naturally sold in pairs, and the ratio between sales of left and right shoes will never shift noticeably from 1:1.
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to consume its complements: foods that consumers believe would taste better together. Drinking cola increases consumers' willingness to pay for a cheeseburger. This effect appears to be contingent on
1197: 246:, to increase demand for the associated blades. Another example is that sometimes a toothbrush is packaged free with toothpaste. The toothbrush is a complement to the toothpaste; the 238:- the demand of one good is linked to the demand for another good. Therefore, if a higher quantity is demanded of one good, a higher quantity will also be demanded of the other, and 1374:{\displaystyle {\frac {\partial f_{x}(p,\omega )}{\partial p_{y}}}={\frac {\partial h_{x}(p,\tau ^{*})}{\partial p_{y}}}-y^{*}{\frac {\partial f_{x}(p,\omega )}{\partial \omega }}} 505:. If the price of petrol were to decrease by some amount, this would result in a higher quantity of cars demanded. This higher quantity demanded would cause the demand curve to 849: 893: 1423:, the left-hand side of the equation and the first term of right-hand side are positive. By the symmetry of Mosak's perspective, evaluating the equation with respect to 1132: 691:
Pricing the base good at a relatively high price to the complementary good - this approach creates a barrier to entry and exit (e.g., a costly car vs inexpensive gas)
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Huh, Young Eun; Vosgerau, Joachim; Morewedge, Carey K. (2016-03-14). "Selective Sensitization: Consuming a Food Activates a Goal to Consume its Complements".
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Sometimes the complement-relationship between two goods is not intuitive and must be verified by inspecting the cross-elasticity of demand using market data.
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Pricing the base good at a relatively low price - this approach allows easy entry by consumers (e.g. low-price consumer printer vs. high-price cartridge)
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in which the consumption of one good (e.g., cola) stimulates demand for its complements (e.g., a cheeseburger). Consumption of a food or beverage
746: 242:. For example, the demand for razor blades may depend on the number of razors in use; this is why razors have sometimes been sold as 1831: 1775: 1698: 1603: 1792: 1659: 610:. Other examples include automobiles and fuel, mobile phones and cellular service, printer and cartridge, among others. 1678: 641:
of a perfect complement exhibits a right angle, as illustrated by the figure. Such preferences can be represented by a
1643: 1619: 2062: 1137: 341:. The opposite is true for substitutes: the consumer is willing to pay less for each marginal unit of good " 1824: 224: 160: 2057: 653: 44: 24: 812: 854: 506: 43:
whose appeal increases with the popularity of its complement. Technically, it displays a negative
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a toothbrush may be higher than toothpaste, but its sales depends on the demand of toothpaste.
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The degree of complementarity, however, does not have to be mutual; it can be measured by the
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denotes the ordinary individual demand for a certain good." In fact, in Mosak's case,
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is large enough to make the whole right-hand-side negative. In this case,
2036: 2021: 1978: 1924: 243: 1733: 1964: 1910: 1064: 385: 2031: 1915: 1862: 665: 32: 404: 802:{\displaystyle {\frac {\partial f_{x}(p,\omega )}{\partial p_{y}}}} 1809: 1634:. Upper Saddle River, New Jersey: Pearson Prentice Hall. p.  1560: 231:, whose demand decreases when its substitute's price decreases. 424:
for cars is represented by the figure, with the initial demand
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are rough complements in an everyday sense, then consumers are
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decomposition of the effect on the ordinary demand for a good
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All non-complementary goods can be considered substitutes. If
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of these relationships rather than their sensory properties.
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will result in a positive movement along the demand curve of
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will result in a negative movement along the demand curve of
52: 27:: as the price of goods Y rises, the demand for good X falls. 1800:
Cowles Commission for Research in Economics, Monograph No. 7
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Supply and demand of cars when the price of petrol decreases
451:. Suppose that the initial price of cars is represented by 413: 975:. The elasticity does not need to be symmetrical. Thus, 556:
of cars, the new increased quantity demanded will be at
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Cengage Learning. pp. 463–464. 1765: 1676: 668:, complementary goods give additional 1813: 1790: 1756: 1670: 613: 1662:. Future Observatory. Archived from 695: 1087:of a simple price change in a good 637:be consumed with another good. The 536:. Assuming a constant supply curve 13: 1839: 1362: 1332: 1300: 1263: 1241: 1211: 783: 753: 703:Mosak's definition states "a good 361:" as it accumulates more of good " 14: 2074: 384:Complementarity may be driven by 1691:10.1057/978-1-349-95121-5_1821-1 844:{\displaystyle f_{i}(p,\omega )} 654:cross price elasticity of demand 1630:Economics: Principles in Action 888:{\displaystyle i=1,2,\ldots ,n} 1784: 1713: 1652: 1612: 1579: 1357: 1345: 1295: 1276: 1236: 1224: 1186: 1154: 838: 826: 778: 766: 203:and cause the demand curve of 95:, an increase in the price of 55:of another good decreases. If 1: 1722:Journal of Marketing Research 1679:"Substitutes and Complements" 1677:Newman, Peter (2016-11-30) . 1572: 915:is not a gross complement of 1594:. Cengage Learning. p.  478:with a quantity demanded of 7: 672:to the producer. It allows 583:with a new increased price 399: 10: 2079: 1403:is a gross substitute for 659: 51:for it increases when the 45:cross elasticity of demand 25:cross elasticity of demand 1848: 1586:Carbaugh, Robert (2006). 1497:is a gross complement of 1127:{\displaystyle \tau ^{*}} 995:is a gross complement of 955:is a gross complement of 723:is a gross complement of 1791:Mosak, Jacob L. (1944). 1766:Mankiw, Gregory (2008). 1058: 321:as they accumulate more 1906:(Post-)experience goods 625:for perfect complements 386:psychological processes 2063:Utility function types 2017:(Non-)excludable goods 1802:. Principia Press: 33. 1768:Principle of Economics 1551: 1531: 1511: 1491: 1471: 1444: 1417: 1397: 1375: 1193: 1128: 1101: 1081: 1049: 1029: 1009: 989: 969: 949: 929: 909: 889: 845: 803: 737: 717: 626: 604: 577: 550: 530: 499: 472: 445: 409: 375: 355: 335: 315: 287: 267: 217: 197: 177: 153: 129: 109: 89: 69: 28: 2013:(Non-)rivalrous goods 1557:are not symmetrical. 1552: 1532: 1512: 1492: 1472: 1470:{\displaystyle x^{*}} 1445: 1443:{\displaystyle x^{*}} 1418: 1398: 1376: 1194: 1129: 1102: 1082: 1050: 1030: 1010: 990: 970: 950: 930: 910: 890: 846: 804: 738: 718: 621: 605: 603:{\displaystyle P_{2}} 578: 576:{\displaystyle Q_{2}} 551: 531: 529:{\displaystyle D_{2}} 500: 498:{\displaystyle Q_{1}} 473: 471:{\displaystyle P_{1}} 446: 444:{\displaystyle D_{1}} 407: 376: 356: 336: 316: 288: 268: 218: 198: 178: 154: 135:and cause the demand 130: 110: 90: 70: 22: 1873:Common-pool resource 1541: 1521: 1501: 1481: 1454: 1427: 1407: 1387: 1205: 1138: 1111: 1091: 1071: 1039: 1019: 999: 979: 959: 939: 919: 899: 855: 813: 747: 727: 707: 587: 560: 540: 513: 482: 455: 428: 394:consumer perceptions 365: 345: 325: 305: 277: 257: 207: 187: 167: 143: 119: 99: 79: 59: 16:Concept in economics 1935:Global public goods 1901:(Non-)durable goods 1878:Complementary goods 1734:10.1509/jmr.12.0240 1624:Sheffrin, Steven M. 809:is negative, where 75:is a complement to 1955:Intermediate goods 1620:O'Sullivan, Arthur 1547: 1527: 1507: 1487: 1467: 1440: 1413: 1393: 1371: 1189: 1134:and chosen bundle 1124: 1097: 1077: 1045: 1025: 1005: 985: 965: 945: 925: 905: 885: 841: 799: 733: 713: 639:indifference curve 631:perfect complement 627: 623:Indifference curve 614:Perfect complement 600: 573: 546: 526: 509:to a new position 495: 468: 441: 410: 371: 351: 331: 311: 283: 263: 213: 193: 173: 149: 125: 105: 85: 65: 37:complementary good 29: 2058:Goods (economics) 2045: 2044: 1945:Information goods 1886:Independent goods 1777:978-0-324-58997-9 1700:978-1-349-95121-5 1605:978-0-324-31461-8 1550:{\displaystyle y} 1530:{\displaystyle x} 1510:{\displaystyle x} 1490:{\displaystyle y} 1416:{\displaystyle y} 1396:{\displaystyle x} 1369: 1314: 1255: 1100:{\displaystyle y} 1080:{\displaystyle x} 1048:{\displaystyle y} 1028:{\displaystyle x} 1008:{\displaystyle x} 988:{\displaystyle y} 968:{\displaystyle x} 948:{\displaystyle y} 928:{\displaystyle y} 908:{\displaystyle x} 797: 736:{\displaystyle y} 716:{\displaystyle x} 696:Gross complements 680:. A few types of 549:{\displaystyle S} 422:supply and demand 374:{\displaystyle y} 354:{\displaystyle z} 334:{\displaystyle y} 314:{\displaystyle x} 286:{\displaystyle y} 266:{\displaystyle x} 248:cost of producing 216:{\displaystyle B} 196:{\displaystyle A} 176:{\displaystyle A} 152:{\displaystyle B} 128:{\displaystyle A} 108:{\displaystyle A} 88:{\displaystyle B} 68:{\displaystyle A} 2070: 1950:Intangible goods 1920:Positional goods 1882:Substitute goods 1853:Anti-rival goods 1834: 1827: 1820: 1811: 1810: 1804: 1803: 1797: 1788: 1782: 1781: 1763: 1754: 1753: 1728:(6): 1034–1049. 1717: 1711: 1710: 1708: 1707: 1674: 1668: 1667: 1656: 1650: 1649: 1633: 1616: 1610: 1609: 1593: 1583: 1556: 1554: 1553: 1548: 1536: 1534: 1533: 1528: 1516: 1514: 1513: 1508: 1496: 1494: 1493: 1488: 1476: 1474: 1473: 1468: 1466: 1465: 1449: 1447: 1446: 1441: 1439: 1438: 1422: 1420: 1419: 1414: 1402: 1400: 1399: 1394: 1380: 1378: 1377: 1372: 1370: 1368: 1360: 1344: 1343: 1330: 1328: 1327: 1315: 1313: 1312: 1311: 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180: 179: 174: 158: 156: 155: 150: 134: 132: 131: 126: 114: 112: 111: 106: 94: 92: 91: 86: 74: 72: 71: 66: 2078: 2077: 2073: 2072: 2071: 2069: 2068: 2067: 2048: 2047: 2046: 2041: 2001:Household goods 1984:Necessity goods 1891:Composite goods 1844: 1838: 1808: 1807: 1795: 1789: 1785: 1778: 1764: 1757: 1718: 1714: 1705: 1703: 1701: 1675: 1671: 1658: 1657: 1653: 1646: 1617: 1613: 1606: 1584: 1580: 1575: 1567:Substitute good 1563: 1542: 1539: 1538: 1522: 1519: 1518: 1502: 1499: 1498: 1482: 1479: 1478: 1461: 1457: 1455: 1452: 1451: 1434: 1430: 1428: 1425: 1424: 1408: 1405: 1404: 1388: 1385: 1384: 1361: 1339: 1335: 1331: 1329: 1323: 1319: 1307: 1303: 1299: 1289: 1285: 1270: 1266: 1262: 1260: 1248: 1244: 1240: 1218: 1214: 1210: 1208: 1206: 1203: 1202: 1174: 1170: 1161: 1157: 1145: 1141: 1139: 1136: 1135: 1118: 1114: 1112: 1109: 1108: 1092: 1089: 1088: 1072: 1069: 1068: 1061: 1040: 1037: 1036: 1020: 1017: 1016: 1000: 997: 996: 980: 977: 976: 960: 957: 956: 940: 937: 936: 920: 917: 916: 900: 897: 896: 856: 853: 852: 820: 816: 814: 811: 810: 790: 786: 782: 760: 756: 752: 750: 748: 745: 744: 728: 725: 724: 708: 705: 704: 698: 678:switching costs 662: 633:is a good that 616: 594: 590: 588: 585: 584: 567: 563: 561: 558: 557: 541: 538: 537: 520: 516: 514: 511: 510: 507:shift rightward 489: 485: 483: 480: 479: 462: 458: 456: 453: 452: 435: 431: 429: 426: 425: 402: 366: 363: 362: 346: 343: 342: 326: 323: 322: 306: 303: 302: 278: 275: 274: 258: 255: 254: 229:substitute good 208: 205: 204: 188: 185: 184: 168: 165: 164: 144: 141: 140: 120: 117: 116: 100: 97: 96: 80: 77: 76: 60: 57: 56: 17: 12: 11: 5: 2076: 2066: 2065: 2060: 2043: 2042: 2040: 2039: 2034: 2029: 2027:Superior goods 2024: 2019: 2010: 2005: 2004: 2003: 1993: 1991:Ordinary goods 1988: 1987: 1986: 1976: 1971: 1962: 1957: 1952: 1947: 1942: 1940:Inferior goods 1937: 1932: 1930:Global commons 1927: 1922: 1913: 1908: 1903: 1898: 1896:Credence goods 1893: 1888: 1875: 1870: 1865: 1860: 1855: 1849: 1846: 1845: 1837: 1836: 1829: 1822: 1814: 1806: 1805: 1783: 1776: 1755: 1712: 1699: 1669: 1666:on 2013-04-04. 1651: 1644: 1611: 1604: 1577: 1576: 1574: 1571: 1570: 1569: 1562: 1559: 1546: 1526: 1506: 1486: 1464: 1460: 1437: 1433: 1412: 1392: 1367: 1364: 1359: 1356: 1353: 1350: 1347: 1342: 1338: 1334: 1326: 1322: 1318: 1310: 1306: 1302: 1297: 1292: 1288: 1284: 1281: 1278: 1273: 1269: 1265: 1259: 1251: 1247: 1243: 1238: 1235: 1232: 1229: 1226: 1221: 1217: 1213: 1188: 1185: 1182: 1177: 1173: 1169: 1164: 1160: 1156: 1153: 1148: 1144: 1121: 1117: 1096: 1076: 1060: 1057: 1044: 1024: 1004: 984: 964: 944: 924: 904: 884: 881: 878: 875: 872: 869: 866: 863: 860: 840: 837: 834: 831: 828: 823: 819: 793: 789: 785: 780: 777: 774: 771: 768: 763: 759: 755: 732: 712: 697: 694: 693: 692: 689: 676:by increasing 674:vendor lock-in 661: 658: 615: 612: 597: 593: 570: 566: 545: 523: 519: 492: 488: 465: 461: 438: 434: 401: 398: 370: 350: 330: 310: 297:more for each 295:willing to pay 282: 262: 212: 192: 172: 148: 124: 104: 84: 64: 15: 9: 6: 4: 3: 2: 2075: 2064: 2061: 2059: 2056: 2055: 2053: 2038: 2035: 2033: 2030: 2028: 2025: 2023: 2020: 2018: 2014: 2011: 2009: 2006: 2002: 1999: 1998: 1997: 1996:Private goods 1994: 1992: 1989: 1985: 1982: 1981: 1980: 1977: 1975: 1974:Neutral goods 1972: 1970: 1969:demerit goods 1966: 1963: 1961: 1958: 1956: 1953: 1951: 1948: 1946: 1943: 1941: 1938: 1936: 1933: 1931: 1928: 1926: 1923: 1921: 1917: 1914: 1912: 1909: 1907: 1904: 1902: 1899: 1897: 1894: 1892: 1889: 1887: 1883: 1879: 1876: 1874: 1871: 1869: 1866: 1864: 1861: 1859: 1858:Capital goods 1856: 1854: 1851: 1850: 1847: 1843: 1835: 1830: 1828: 1823: 1821: 1816: 1815: 1812: 1801: 1794: 1787: 1779: 1773: 1769: 1762: 1760: 1751: 1747: 1743: 1739: 1735: 1731: 1727: 1723: 1716: 1702: 1696: 1692: 1688: 1684: 1680: 1673: 1665: 1661: 1655: 1647: 1645:0-13-063085-3 1641: 1637: 1632: 1631: 1625: 1621: 1615: 1607: 1601: 1597: 1592: 1591: 1582: 1578: 1568: 1565: 1564: 1558: 1544: 1524: 1504: 1484: 1462: 1458: 1435: 1431: 1410: 1390: 1381: 1365: 1354: 1351: 1348: 1340: 1336: 1324: 1320: 1316: 1308: 1304: 1290: 1286: 1282: 1279: 1271: 1267: 1257: 1249: 1245: 1233: 1230: 1227: 1219: 1215: 1200: 1183: 1180: 1175: 1171: 1167: 1162: 1158: 1151: 1146: 1142: 1119: 1115: 1094: 1074: 1066: 1063:The standard 1056: 1042: 1022: 1002: 982: 962: 942: 922: 902: 882: 879: 876: 873: 870: 867: 864: 861: 858: 835: 832: 829: 821: 817: 791: 787: 775: 772: 769: 761: 757: 730: 710: 701: 690: 687: 686: 685: 683: 679: 675: 671: 667: 657: 655: 650: 646: 644: 640: 636: 632: 624: 620: 611: 595: 591: 568: 564: 543: 521: 517: 508: 490: 486: 463: 459: 436: 432: 423: 419: 415: 406: 397: 395: 391: 387: 382: 368: 348: 328: 308: 300: 299:marginal unit 296: 280: 260: 251: 249: 245: 241: 237: 232: 230: 226: 225:shift outward 210: 190: 170: 162: 146: 138: 122: 102: 82: 62: 54: 50: 46: 42: 38: 34: 26: 21: 2037:Veblen goods 2022:Search goods 2008:Public goods 1979:Normal goods 1960:Luxury goods 1925:Giffen goods 1877: 1868:Common goods 1799: 1786: 1767: 1725: 1721: 1715: 1704:. Retrieved 1682: 1672: 1664:the original 1654: 1629: 1614: 1589: 1581: 1382: 1201: 1062: 702: 699: 670:market power 663: 651: 647: 634: 630: 628: 411: 383: 252: 244:loss leaders 239: 236:joint demand 235: 233: 161:shift inward 36: 30: 1965:Merit goods 1911:Final goods 1517:. Overall, 2052:Categories 2032:Used goods 1916:Free goods 1863:Club goods 1706:2022-05-26 1573:References 645:function. 240:vice versa 1840:Types of 1742:0022-2437 1463:∗ 1436:∗ 1366:ω 1363:∂ 1355:ω 1333:∂ 1325:∗ 1317:− 1301:∂ 1291:∗ 1287:τ 1264:∂ 1242:∂ 1234:ω 1212:∂ 1184:… 1176:∗ 1163:∗ 1147:∗ 1120:∗ 1116:τ 877:… 836:ω 784:∂ 776:ω 754:∂ 666:marketing 47:and that 33:economics 1626:(2003). 400:Examples 301:of good 1750:4800997 1685:: 1–7. 660:Example 1774:  1748:  1740:  1697:  1642:  1602:  1015:while 420:. The 418:petrol 49:demand 1842:goods 1796:(PDF) 1746:S2CID 1065:Hicks 1059:Proof 137:curve 53:price 39:is a 2015:and 1967:and 1918:vs. 1884:vs. 1880:vs. 1772:ISBN 1738:ISSN 1695:ISBN 1640:ISBN 1600:ISBN 1537:and 935:but 851:for 635:must 416:and 414:cars 273:and 139:for 41:good 35:, a 1730:doi 1687:doi 1383:If 1199:is 743:if 664:In 381:". 223:to 159:to 31:In 2054:: 1798:. 1758:^ 1744:. 1736:. 1726:53 1724:. 1693:. 1681:. 1638:. 1636:88 1622:; 1598:. 1596:35 1055:. 629:A 1833:e 1826:t 1819:v 1780:. 1752:. 1732:: 1709:. 1689:: 1648:. 1608:. 1545:y 1525:x 1505:x 1485:y 1459:x 1432:x 1411:y 1391:x 1358:) 1352:, 1349:p 1346:( 1341:x 1337:f 1321:y 1309:y 1305:p 1296:) 1283:, 1280:p 1277:( 1272:x 1268:h 1258:= 1250:y 1246:p 1237:) 1231:, 1228:p 1225:( 1220:x 1216:f 1187:) 1181:, 1172:y 1168:, 1159:x 1155:( 1152:= 1143:z 1095:y 1075:x 1043:y 1023:x 1003:x 983:y 963:x 943:y 923:y 903:x 883:n 880:, 874:, 871:2 868:, 865:1 862:= 859:i 839:) 833:, 830:p 827:( 822:i 818:f 792:y 788:p 779:) 773:, 770:p 767:( 762:x 758:f 731:y 711:x 596:2 592:P 569:2 565:Q 544:S 522:2 518:D 491:1 487:Q 464:1 460:P 437:1 433:D 369:y 349:z 329:y 309:x 281:y 261:x 211:B 191:A 171:A 147:B 123:A 103:A 83:B 63:A

Index


cross elasticity of demand
economics
good
cross elasticity of demand
demand
price
curve
shift inward
shift outward
substitute good
loss leaders
cost of producing
willing to pay
marginal unit
psychological processes
activates a goal
consumer perceptions
Supply and Demand curves.
cars
petrol
supply and demand
shift rightward

Indifference curve
indifference curve
Leontief utility
cross price elasticity of demand
marketing
market power

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