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Comparative Statics with Concave and Supermodular Functions

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Author Info
John K.-H. Quah () (Department of Economics, Oxford University)

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Abstract

Certain problems in comparative statics, including (but not exclusively) certain problems in consumer theory, cannot be easily addressed by the methods of lattice programming. One reason for this is that there is no order on the choice space which orders choices in a way which conforms with the comparison desired, and which also orders constraint sets in the strong set order it induces. The objective of this paper is to show how lattice programming theory can be extended to deal with situations like these. We show that the interaction of concavity and supermodularity in objective or constraint functions yield a structure that is very useful for comparative statics.

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Publisher Info
Paper provided by Economics Group, Nuffield College, University of Oxford in its series Economics Papers with number 2004-W01.

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Length: 45 pages
Date of creation: 06 Feb 2004
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Handle: RePEc:nuf:econwp:041

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Web page: http://www.nuff.ox.ac.uk/economics/

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  1. Milgrom, Paul & Shannon, Chris, 1994. "Monotone Comparative Statics," Econometrica, Econometric Society, vol. 62(1), pages 157-80, January. [Downloadable!] (restricted)
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  2. Quah, John K. -H., 2003. "Market demand and comparative statics when goods are normal," Journal of Mathematical Economics, Elsevier, vol. 39(3-4), pages 317-333, June. [Downloadable!] (restricted)
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  1. Elena Antoniadou, 2007. "Comparative Statics for the Consumer Problem," Economic Theory, Springer, vol. 31(1), pages 189-203, April. [Downloadable!] (restricted)
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