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Directional Monotone Comparative Statics

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  • Anne-Christine Barthel

    (Department of Economics, The University of Kansas)

  • Tarun Sabarwal

    (Department of Economics, University of Kansas)

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. This paper characterizes monotone comparative statics in different directions in finite-dimensional Euclidean space. These new characterizations are ordinal and retain the same flavor as their counterparts in the standard theory, showing new connections to the standard theory. The results are highlighted by several applications in consumer theory, producer theory and game theory. These applications were previously outside the scope of the standard theory of monotone comparative statics.

Suggested Citation

  • Anne-Christine Barthel & Tarun Sabarwal, 2016. "Directional Monotone Comparative Statics," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 201601, University of Kansas, Department of Economics.
  • Handle: RePEc:kan:wpaper:201601
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Alexei Alexandrov & Özlem Bedre-Defolie, 2015. "LeChatelier-Samuelson principle in games and pass-through of shocks," ESMT Research Working Papers ESMT-15-03, ESMT European School of Management and Technology, revised 01 Mar 2016.
    2. repec:spr:joecth:v:66:y:2018:i:3:d:10.1007_s00199-018-1153-5 is not listed on IDEAS
    3. Bar Light, 2019. "Stochastic Comparative Statics in Markov Decision Processes," Papers 1904.05481, arXiv.org.

    More about this item

    Keywords

    monotone comparative statics; directional single-crossing property; directional set order;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D00 - Microeconomics - - General - - - General

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