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This paper was published in Papers in Quantitative Economics, edited by Arvid Zarley, published by Kansas University Press, in 1971.

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ABSTRACT:
This paper presents a model of interrelated preferences for pairs of individuals. It investigates the possibility of an equilibrium with voluntary transactions. It identifies the puzzling case of two people who disagree because each wants the other to have the better part and shows that if this is assumed away, then there exists a competitive equilibrium with voluntary bilateral gifts.

SUGGESTED CITATION:
Ted Bergstrom, "Interrelated Consumer Preference and Voluntary Exchange" (March 1, 1971). Department of Economics, UCSB. Ted Bergstrom. Paper 1971B.
http://repositories.cdlib.org/ucsbecon/bergstrom/1971B