Gross Substitutes and Complements : A Simple Generalization

This paper extends the gross substitutes and complements (GSC) framework of Sun and Yang (2006) to a more general substitutes and complements structure. We show that competitive equilibrium with indivisible goods exists under significantly weaker, easily checkable, and interpretable conditions. We show that the dynamic double-track procedure developed by Sun and Yang (2008, 2009) can be extended to find the competitive equilibrium outcome. We also apply these insights to trading networks