Monotone comparative statics with separable objective functions

Christian Ewerhart

No 472, IEW - Working Papers from Institute for Empirical Research in Economics - University of Zurich

Abstract: The sum of a supermodular function, assumed nondecreasing in the choice variable, and of a 'concavely supermodularizable' function, assumed nonincreasing in the parameter variable, satisfies the Milgrom-Shannon (1994, Monotone comparative statics, Econometrica 62, 157-180) single crossing condition. As an application, I prove existence of a pure strategy Nash equilibrium in a Cournot duopoly with logconcave demand, affiliated types, and nondecreasing costs.

Keywords: Supermodularity; separable objective function; single crossing condition; quantity competition. (search for similar items in EconPapers)
JEL-codes: C02 C72 C65 (search for similar items in EconPapers)
Date: 2010-01
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