Rather than is mostly used as a conjunction on the GMAT, whereas instead of is always a preposition. You will notice that people often try to use instead of as a conjunction:
e.g. Let's do it later instead of now.
1)This is an incorrect construction because now is an adverb, and GMAT requires that we use a noun after instead of:
e.g.Let's do it now rather than later.
2)Also, there is a meaning difference between the two. Rather than is used to to show preference whereas instead of is used to show more of a substitution.
3)In place of = Instead of
Some more examples:
Conj.: Rather than
“Gibson guitarswith their carved tops and necks that are fitted and glued to the body, rather than bolted onare expensive to makeâ€
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