Monotone Comparative Statics in Games with both Strategic Complements and Strategic Substitutes
This paper analyzes games with both strategic substitutes and strategic complements. Such games may behave differently from either games with strategic complements or games with strategic substitutes. In such games, equilibria do not decrease as the parameter increases. Moreover, natural conditions are presented to guarantee that an increase in the parameter leads to an increase in the equilibrium: in other words, conditions to guarantee monotone comparative statics. These conditions are based on intuitive tradeoffs between direct parameter effects and indirect strategic effects. These conditions are needed only for players with strategic substitutes; no conditions are imposed on players with strategic complements. Several examples highlight the results.
|Date of creation:||Aug 2012|
|Date of revision:||Aug 2012|
|Contact details of provider:|| Postal: 415 Snow Hall, Lawrence, KS 66045|
Phone: (785) 864-3501
Fax: (785) 864-5270
Web page: http://www2.ku.edu/~kuwpaper/
More information through EDIRC
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.:
- Federico Echenique, 2002.
"Comparative Statics by Adaptive Dynamics and the Correspondence Principle,"
Econometric Society, vol. 70(2), pages 833-844, March.
- Federico Echenique, 2000. "Comparative Statics by Adaptive Dynamics and The Correspondence Principle," Econometric Society World Congress 2000 Contributed Papers 1906, Econometric Society.
- Federico Echenique, 1999. "Comparative Statics by Adaptative Dynamics and the Correspondence Principle," Documentos de Trabajo (working papers) 2099, Department of Economics - dECON.
- Federico Echenique, 2000. "Comparative Statics by Adaptive Dynamics and The Correspondence Principle," GE, Growth, Math methods 9912002, EconWPA.
- Federico Echenique., 2000. "Comparative Statics by Adaptive Dynamics and The Correspondence Principle," Economics Working Papers E00-273, University of California at Berkeley.
- Tombak, Mihkel M., 2006. "Strategic asymmetry," Journal of Economic Behavior & Organization, Elsevier, vol. 61(3), pages 339-350, November.
- Villas-Boas, J. Miguel, 1997. "Comparative Statics of Fixed Points," Journal of Economic Theory, Elsevier, vol. 73(1), pages 183-198, March.
- Alexander Zimper, 2007.
"A fixed point characterization of the dominance-solvability of lattice games with strategic substitutes,"
International Journal of Game Theory,
Springer, vol. 36(1), pages 107-117, September.
- Alexander Zimper, 2005. "A fixed point characterization of the dominancesolvability of lattice games with strategic substitutes," Working Papers 32, Economic Research Southern Africa.
- Acemoglu, Daron & Jensen, Martin Kaae, 2013.
"Aggregate comparative statics,"
Games and Economic Behavior,
Elsevier, vol. 81(C), pages 27-49.
- John K.-H Quah, 2007. "The Comparative Statics of Constrained Optimization Problems," Econometrica, Econometric Society, vol. 75(2), pages 401-431, 03.
- Roy, Sunanda & Sabarwal, T, 2008. "On the (Non)-Lattice Structure of Equilibrium Sets in Games with Strategic Substitutes," Staff General Research Papers 13103, Iowa State University, Department of Economics.
- John K.-H. Quah & Bruno Strulovici, 2007.
"Comparative Statics, Informativeness, and the Interval Dominance Order,"
2007-W04, Economics Group, Nuffield College, University of Oxford.
- John K.-H. Quah & Bruno Strulovici, 2009. "Comparative Statics, Informativeness, and the Interval Dominance Order," Econometrica, Econometric Society, vol. 77(6), pages 1949-1992, November.
- John Quah & Bruno Strulovici, 2007. "Comparative Statics, Informativeness, and the Interval Dominance Order," Economics Series Working Papers 2007-WO4, University of Oxford, Department of Economics.
- Martin Jensen, 2010. "Aggregative games and best-reply potentials," Economic Theory, Springer, vol. 43(1), pages 45-66, April.
- repec:kan:wpaper:201004 is not listed on IDEAS
- Amir, Rabah & Garcia, Filomena & Knauff, Malgorzata, 2010. "Symmetry-breaking in two-player games via strategic substitutes and diagonal nonconcavity: A synthesis," Journal of Economic Theory, Elsevier, vol. 145(5), pages 1968-1986, September.
When requesting a correction, please mention this item's handle: RePEc:kan:wpaper:201236. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jianbo Zhang)
If references are entirely missing, you can add them using this form.