To construct a no-arbitrage defaultable bond market, we work on the state price density framework. Using the heat kernel approach (HKA for short) with the killing of a Markov process, we construct a single defaultable bond market that enables an explicit expression of a defaultable bond and...

We develop a nonparametric approach to test for monotone behavior in optimizing agents and to make out-of-sample predictions. Our approach could be applied to simultaneous games with ordered actions, with agents playing pure strategy Nash equilibria or Bayesian Nash equilibria. We require no...

This study deals with comparative statics of the consumer’s demand. According to Lancaster [1966, Journal of Political Economy], a utility function should be defined on the set of all characteristics that affect well-being of the consumer and these characteristics should be derived by...

We establish an existence theorem for the Cournot-Walras equilibria in the model which consists of a representative consumer and n-monopolistically competitive firms. Instead of the traditional approach which depends on Kakutani’s fixed point theorem, we employ the theory of the relationship...

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...

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...