Monotone comparative statics: Changes in preferences vs changes in the feasible set
AbstractLet a preference ordering on a lattice be perturbed. As is well known, single crossing conditions are necessary and sufficient for a monotone reaction of the set of optimal choices from every chain. Actually, there are several interpretations of monotonicity and several corresponding single crossing conditions. We describe restrictions on the preferences that ensure a monotone reaction of the set of optimal choices from every sublattice whenever a perturbation of preferences satisfies the corresponding single crossing condition. Quasisupermodularity is necessary if we want monotonicity in every conceivable sense; otherwise, weaker conditions will do.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 31612.
Date of creation: 15 Jun 2011
Date of revision:
strategic complementarity; monotone comparative statics; best response correspondence; single crossing; quasisupermodularity;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-25 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Milgrom, P. & Shannon, C., 1991.
"Monotone Comparative Statics,"
Papers, Stanford - Institute for Thoretical Economics
11, Stanford - Institute for Thoretical Economics.
- Edlin, Aaron S. & Shannon, Chris, 1998.
"Strict Monotonicity in Comparative Statics,"
Journal of Economic Theory, Elsevier,
Elsevier, vol. 81(1), pages 201-219, July.
- Aaron S. Edlin and Chris Shannon., 1995. "Strict Monotonicity in Comparative Statics," Economics Working Papers, University of California at Berkeley 95-238, University of California at Berkeley.
- Athey, Susan, 2001.
"Single Crossing Properties and the Existence of Pure Strategy Equilibria in Games of Incomplete Information,"
Econometrica, Econometric Society,
Econometric Society, vol. 69(4), pages 861-89, July.
- Athey, S., 1997. "Sigle Crossing Properties and the Existence of Pure Strategy Equilibria in Games of Incomplete Information," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 97-11, Massachusetts Institute of Technology (MIT), Department of Economics.
- John K.-H Quah, 2007. "The Comparative Statics of Constrained Optimization Problems," Econometrica, Econometric Society, Econometric Society, vol. 75(2), pages 401-431, 03.
- Philip J Reny, 2005.
"On the Existence of Monotone Pure Strategy Equilibria in Bayesian Games,"
NajEcon Working Paper Reviews, www.najecon.org
- Philip J. Reny, 2005. "On the Existence of Monotone Pure Strategy Equilibria in Bayesian Games," Levine's Working Paper Archive 784828000000000067, David K. Levine.
- Philip J Reny, 2005. "On the Existence of Monotone Pure Strategy Equilibria in Bayesian Games," Levine's Working Paper Archive 784828000000000413, David K. Levine.
- Vives, X., 1988.
"Nash Equilibrium With Strategic Complementarities,"
UFAE and IAE Working Papers, Unitat de Fonaments de l'AnÃ lisi EconÃ²mica (UAB) and Institut d'AnÃ lisi EconÃ²mica (CSIC)
107-88, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Shannon, Chris, 1995. "Weak and Strong Monotone Comparative Statics," Economic Theory, Springer, Springer, vol. 5(2), pages 209-27, March.
- Agliardi, Elettra, 2000. "A generalization of supermodularity," Economics Letters, Elsevier, Elsevier, vol. 68(3), pages 251-254, September.
- Bruno Strulovici & Thomas Weber, 2010. "Generalized monotonicity analysis," Economic Theory, Springer, Springer, vol. 43(3), pages 377-406, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.