Download or read book Issues in Monotone Comparative Statics written by Peter F. Frielinghausen and published by . This book was released on 1998 with total page 394 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Strict Monotonicity in Comparative Statics written by Aaron S. Edlin and published by . This book was released on 2001 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economists commonly seek to show that one variable increases in response to changes in another variable. This paper provides sufficient conditions to draw such strict monotone comparative statics conclusions in optimization problems with and without binding constraints. These results extend the lattice-theoretic results of Milgrom and Shannon (1994) by imposing a stronger differential version of the single crossing property and arguing from first-order conditions. We illustrate the importance of these results through applications involving holdup problems, optimal tax problems, and modern manufacturing.
Download or read book Directional Monotone Comparative Statics written by Anne-Christine Barthel and published by . This book was released on 2019 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Supermodularity and Complementarity written by Donald M. Topkis and published by Princeton University Press. This book was released on 2011-02-11 with total page 285 pages. Available in PDF, EPUB and Kindle. Book excerpt: The economics literature is replete with examples of monotone comparative statics; that is, scenarios where optimal decisions or equilibria in a parameterized collection of models vary monotonically with the parameter. Most of these examples are manifestations of complementarity, with a common explicit or implicit theoretical basis in properties of a super-modular function on a lattice. Supermodular functions yield a characterization for complementarity and extend the notion of complementarity to a general setting that is a natural mathematical context for studying complementarity and monotone comparative statics. Concepts and results related to supermodularity and monotone comparative statics constitute a new and important formal step in the long line of economics literature on complementarity. This monograph links complementarity to powerful concepts and results involving supermodular functions on lattices and focuses on analyses and issues related to monotone comparative statics. Don Topkis, who is known for his seminal contributions to this area, here presents a self-contained and up-to-date view of this field, including many new results, to scholars interested in economic theory and its applications as well as to those in related disciplines. The emphasis is on methodology. The book systematically develops a comprehensive, integrated theory pertaining to supermodularity, complementarity, and monotone comparative statics. It then applies that theory in the analysis of many diverse economic models formulated as decision problems, noncooperative games, and cooperative games.
Download or read book The Neglect of Monotone Comparative Static Methods written by Carol Horton Tremblay and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Monotone methods enable comparative static analysis without the restrictive assumptions of the implicit function theorem. Ease of use and flexibility in solving comparative static and game theory problems have made monotone methods popular in the economics literature and in graduate courses, but they are still absent from undergraduate mathematical economics courses and textbooks. We illustrate the generality of monotone comparative statics relative to the implicit function approach. For example, to sign the effect of a discrete policy shift on an optimal control or choice variable, one need only check that marginal returns increase with the policy parameter. We also apply monotone methods in game theory settings. As mathematical economics courses and majors gain popularity, incorporating monotone methods into curriculum and textbooks would provide a modern treatment of comparative static analysis.
Download or read book Comparative Statics Under Uncertainty written by Susan Athey and published by . This book was released on 1996 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops necessary and sufficient conditions for monotone comparative statics predictions in several classes of stochastic optimization problems.
Download or read book Monotone Comparative Statics written by Bruno H. Strulovici and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We consider comparative statics of solutions to parameterized optimization problems. A geometric method is developed for finding a vector field that, at each point in the parameter space, indicates a direction in which monotone comparative statics obtain. Given such a vector field, we provide sufficient conditions under which the problem can be reparameterized on the parameter space (or a subset thereof) in a way that guarantees monotone comparative statics. A key feature of our method is that it does not require the feasible set to be a lattice and works in the absence of the standard quasi-supermodularity and single-crossing assumptions on the objective function. We illustrate our approach with a variety of applications.
Download or read book Iterative Monotone Comparative Statics written by Lukasz Balbus and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monotone Comparative Statics for Cut Offs written by Jianrong Tian and published by . This book was released on 2016 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: I show that by taking path integral along the so-called diagonally increasing path, the interval dominance order proposed by Quah and Strulovici (2009) can be applied to a class of multi-dimensional optimization problems with cut-off rules. Two applications are included: optimal switching time and monotone pragmatics.
Download or read book Monotone Comparative Statics in General Equilibrium written by Francesco Ruscitti and published by . This book was released on 2016 with total page 12 pages. Available in PDF, EPUB and Kindle. Book excerpt: Under certain conditions on the excess demand function, it is shown that the set of equilibrium prices coincides with the set of maximizers of a potential function. Therefore, monotone comparative statics techniques can be employed to study how equilibrium prices change when there are shocks to the parameters of the model. As a by-product of our analysis, it turns out that the set of equilibrium prices is a convex lattice.
Download or read book Monotone Comparative Statics with Separable Objective Functions written by Christian Ewerhart and published by . This book was released on 2010 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Issues in Specialized Economic Research and Application 2011 Edition written by and published by ScholarlyEditions. This book was released on 2012-01-09 with total page 324 pages. Available in PDF, EPUB and Kindle. Book excerpt: Issues in Specialized Economic Research and Application: 2011 Edition is a ScholarlyEditions™ eBook that delivers timely, authoritative, and comprehensive information about Specialized Economic Research and Application. The editors have built Issues in Specialized Economic Research and Application: 2011 Edition on the vast information databases of ScholarlyNews.™ You can expect the information about Specialized Economic Research and Application in this eBook to be deeper than what you can access anywhere else, as well as consistently reliable, authoritative, informed, and relevant. The content of Issues in Specialized Economic Research and Application: 2011 Edition has been produced by the world’s leading scientists, engineers, analysts, research institutions, and companies. All of the content is from peer-reviewed sources, and all of it is written, assembled, and edited by the editors at ScholarlyEditions™ and available exclusively from us. You now have a source you can cite with authority, confidence, and credibility. More information is available at http://www.ScholarlyEditions.com/.
Download or read book Monotone Comparative Statics Under Monopolistic Competition written by Peter Arendorf Bache and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Asymmetric Monotone Comparative Statics for the Industry Compositions written by Anders Rosenstand Laugesen and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Lattice Based Monotone Comparative Statics on Precautionary Paying for Stochastic Improvements written by Jingyuan Li and published by . This book was released on 2016 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the effects of ambiguity aversion and ambiguity on optimal decisions, which must be taken in advance at a point when the future state of the world is ambiguous. Holding risk preferences, beliefs, and time preferences fixed, we use lattice-based monotone comparative statics to demonstrate the sufficient conditions for a change in ambiguity aversion alone to increase the strength of the precautionary paying motive. We also examine the effects of ambiguity changes on precautionary payment. Finally, we apply our results to saving, self-protection, and self-insurance problems.
Download or read book Generalized Monotonicity Analysis written by Bruno H. Strulovici and published by . This book was released on 2008 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: Complex economic problems often lack the structure for the application of standard comparative statics techniques. Generalized Monotonicity Analysis (GMA) extends usual methods in several directions. First, it provides a new way of endogenously generating parameter moves that yield monotonicity. Second, it allows one to easily study the monotonicity of functions of the initial variables. Third, GMA may be used to derive conditions under which monotonicity obtains with respect to imposed moves of parameters, for example corresponding to parameter aggregates. Fourth, GMA naturally provides lower and/or upper bounds on the sensitivity of variables (or functions thereof) to parameters. Fifth, GMA contributes insights into the theory of comparative statics, for example as far as dealing with with constraints or exploiting additional information about the problem structure are concerned. Several applications are discussed, including constrained optimization, non-supermodular games, aggregation, robust inference, and monotone comparative dynamics.
Download or read book Essays in Information Economics and Monotone Comparative Statics written by Daniel Rappoport and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Chapter 3 studies how a principal incentivizes costly information acquisition from a disinterested agent through monetary transfers. The main focus is the moral hazard that arises when the principal can observe the results of the investigation but not the entire research process. More specifically, we assume that the principal can contract on the realized posterior belief but not on the posterior beliefs that could have been realized or on their probability. We find that, unlike in standard moral hazard problems, under either limited liability or risk aversion the principal implements his first best experiment at first best cost. However, under risk aversion and limited liability the principal suffers efficiency loss. More specifically, if the principal plans to implement an asymmetric experiment, one which seeks certainty with low probability and is uninformative otherwise, the second best experiment will be distorted toward less asymmetric experiments and provide the agent with a positive rent.
