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By employing order-theoretic comparative statics, we provide necessary and sufficient conditions on the direct utility function (alternatively, on the indirect utility function) to guarantee that the compensating and equivalent variations are monotonically increasing in income. We also show that...
Persistent link: https://www.econbiz.de/10010680576
We establish an existence theorem for Cournot-Walras equilibria in a monopolistically competitive economy. Instead of the traditional approach which depends on Kakutani's fixed point theorem, we employ the theories of aggregative games and best reply potential games. We show that, if there...
Persistent link: https://www.econbiz.de/10008870836
We carry out a revealed preference analysis of monotone comparative statics. We ask what restrictions on an agent's observed choice behavior are necessary and sufficient to rationalize the data with a preference guaranteeing that choices are always monotone with re- spect to a parameter. We...
Persistent link: https://www.econbiz.de/10011185953
In this paper, we generalize the lattice theoretical comparative statics by Li Calzi and Veinott, and Milgrom and Shannon. While their theorem is constructed on lattices, particularly on partially ordered sets, we do not require the antisymmetry on a binary relation defined on the set. On the...
Persistent link: https://www.econbiz.de/10011208234