Directional monotone comparative statics

B-Tier
Journal: Economic Theory
Year: 2018
Volume: 66
Issue: 3
Pages: 557-591

Authors (2)

Anne-Christine Barthel (not in RePEc) Tarun Sabarwal (University of Kansas)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract Many questions of interest in economics can be stated in terms of monotone comparative statics: If a parameter of a constrained optimization problem increases, when does its solution increase as well. We characterize monotone comparative statics in different directions in finite-dimensional Euclidean space by extending the monotonicity theorem of Milgrom and Shannon (Econometrica 62(1):157–180, 1994) to constraint sets ordered in Quah (Econometrica 75(2):401–431, 2007)’s set order. Our characterizations are ordinal and retain the same flavor as their counterparts in the standard theory, showing new connections to the standard theory and presenting new results. The results are highlighted with several applications (in consumer theory, producer theory, and game theory) which were previously outside the scope of the standard theory of monotone comparative statics.

Technical Details

RePEc Handle
repec:spr:joecth:v:66:y:2018:i:3:d:10.1007_s00199-017-1079-3
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29