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research article

Monotone Comparative Statics: Geometric Approach

Weber, Thomas A.  
•
Strulovici, Bruno H.
2008
Journal of Optimization Theory and Applications

We consider the 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 obtains. 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.

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Type
research article
DOI
10.1007/s10957-007-9339-1
Author(s)
Weber, Thomas A.  
Strulovici, Bruno H.
Date Issued

2008

Publisher

Springer Verlag

Published in
Journal of Optimization Theory and Applications
Volume

137

Issue

3

Start page

641

End page

673

Subjects

Change of parameters

•

Parameterized optimization problems

•

Single-crossing

•

Supermodularity

Editorial or Peer reviewed

REVIEWED

Written at

OTHER

EPFL units
OES  
Available on Infoscience
July 15, 2013
Use this identifier to reference this record
https://infoscience.epfl.ch/handle/20.500.14299/93334
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