RE: Economic Concepts #3 - Substitutes vs. Complements

You are viewing a single comment's thread from:

Economic Concepts #3 - Substitutes vs. Complements

in economics •  7 years ago 

I'm loving this series, @spectrumecons!

Once we learn to see things in terms of complementarity and substitutability, we can see so many other phenomena in a new light:

Personally, I like thinking about beliefs and inferences as mental tools that can be analyzed in this way. 'X' and 'not-X' are strong (maybe even perfect) substitutes for each other. 'If P, then Q' means that Q is a strong (maybe perfect) complement to P. But this does not necessarily mean that P is just as good a complement to Q.

Inter-personal power can also be analyzed in this way: A powerful person in one that functions as a strong complement or pre-condition to other people's well-being but has few if any substitutes to challenge his/her position.

While my ideas aren't completely clear on the subject, it seems like substitutability is simply another word for "zero-sumness" while complementarity means "non-zero-sumness"... But my convictions on this point and quite negotiable. (I'm open to substitutes!)

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

Thanks @paradigms.lost. It is important to understand the use of complements and substitutes for many reasons.

I understand what you mean by substitutability and 'zero-sumness'. For perfect substitutes it is either one or the other. In many cases the lines are a little blurred. Perfect substitutes are unusual. Most substitutes offer similarities which are sufficient to act as functional replacements.

100% agree