Comparative Statics, Informativeness, and the Interval Dominance Order
We identify a natural way of ordering functions, which we call the interval dominance order and develop a theory of monotone comparative statics based on this order. This way of ordering functions is weaker then the standard one based on the single crossing property (Milgrom and Shannon, 1994) and so our results apply in some settings where the single crossing property does not hold. For example, they are useful when examining the comparative statics of optimal stopping time problems. We also show that certain basic results in statistical decision theory which are important in economics – specifically, the complete class theorem of Karlin and Rubin (1956) and the results connected with Lehmann’s (1988) concept of informativeness – generalize to payoff functions obeying the interval dominance order.
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- Athey, Susan, 2002.
"Monotone Comparative Statics Under Uncertainty,"
3372263, Harvard University Department of Economics.
- Milgrom, P. & Shannon, C., 1991.
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- Susan Athey & Jonathan Levin, 1998.
"The Value of Information In Monotone Decision Problems,"
98-24, Massachusetts Institute of Technology (MIT), Department of Economics.
- Jonathan Levin & Susan Athey, 2001. "The Value of Information in Monotone Decision Problems," Working Papers 01003, Stanford University, Department of Economics.
- Ormiston Michael B. & Schlee Edward E., 1993. "Comparative Statics under Uncertainty for a Class of Economic Agents," Journal of Economic Theory, Elsevier, vol. 61(2), pages 412-422, December.
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