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A revealed preference theory of monotone choice and strategic complementarity

Author

Listed:
  • Natalia Lazzati

    (Department of Economics, University of California Santa Cruz)

  • John K.-H. Quah

    (Department of Economics, Johns Hopkins University)

  • Koji Shirai

    (School of Economics, Kwansei Gakuin University)

Abstract

We develop revealed preference characterizations of (1) monotone choice in the context of individual decision making and (2) strategic complementarity in the context of simultaneous games. We first consider the case where the observer has access to panel data and then extend the analysis to the case where data sets are cross sectional and preferences heterogenous. Lastly, we apply our techniques to investigate the possibility of spousal influence in smoking decisions.

Suggested Citation

  • Natalia Lazzati & John K.-H. Quah & Koji Shirai, 2015. "A revealed preference theory of monotone choice and strategic complementarity," Discussion Paper Series 138, School of Economics, Kwansei Gakuin University, revised Dec 2015.
    • Handle: RePEc:kgu:wpaper:138
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    References listed on IDEAS

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    1. Yuichi Kitamura & Jörg Stoye, 2018. "Nonparametric Analysis of Random Utility Models," Econometrica, Econometric Society, vol. 86(6), pages 1883-1909, November.
    2. Kukushkin, Nikolai S. & Quah, John K.-H. & Shirai, Koji, 2016. "A counterexample on the completion of preferences with single crossing differences," MPRA Paper 73760, University Library of Munich, Germany.
    3. 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.
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    11. Daniel McFadden, 2005. "Revealed stochastic preference: a synthesis," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 26(2), pages 245-264, August.
    12. Natalia Lazzati, 2015. "Treatment response with social interactions: Partial identification via monotone comparative statics," Quantitative Economics, Econometric Society, vol. 6(1), pages 49-83, March.
    13. Varian, Hal R, 1982. "The Nonparametric Approach to Demand Analysis," Econometrica, Econometric Society, vol. 50(4), pages 945-973, July.
    14. Zhou Lin, 1994. "The Set of Nash Equilibria of a Supermodular Game Is a Complete Lattice," Games and Economic Behavior, Elsevier, vol. 7(2), pages 295-300, September.
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    Cited by:

    1. Yuichi Kitamura & Jörg Stoye, 2018. "Nonparametric Analysis of Random Utility Models," Econometrica, Econometric Society, vol. 86(6), pages 1883-1909, November.
    2. Kukushkin, Nikolai S. & Quah, John K.-H. & Shirai, Koji, 2016. "A counterexample on the completion of preferences with single crossing differences," MPRA Paper 73760, University Library of Munich, Germany.
    3. Sobel, Joel, 2019. "Iterated weak dominance and interval-dominance supermodular games," Theoretical Economics, Econometric Society, vol. 14(1), January.

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    More about this item

    Keywords

    monotone comparative statics; single crossing di↵erences; interval dominance; supermodular games; lattices;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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