A revealed preference theory of monotone choice and strategic complementarity
John Quah () and
Additional contact information
Koji Shirai: Institute of Economic Research, Kyoto University
No 914, KIER Working Papers from Kyoto University, Institute of Economic Research
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 extend our analysis to a game-theoretic setting where players' chosen actions, the strategy sets from which actions are chosen, and the parameters which may affect payoffs are observed. Variation in the data arises from changes to parameters and/or changes to the strategy sets. We show that an intuitive and easy-to-check property on the data set is necessary and sufficient for it to be consistent with the hypothesis that each observation is a pure strategy Nash equilibrium in a game with strategic complementarity. When a data set obeys this property, we show how to exploit this data to identify the set of possible Nash equilibria in a game outside the set of observations.
Keywords: monotone comparative statics; single crossing di erences; interval dominance; supermodular games; lattices (search for similar items in EconPapers)
JEL-codes: C6 C7 D7 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-gth, nep-mfd and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Working Paper: A revealed preference theory of monotone choice and strategic complementarity (2016)
Working Paper: A revealed preference theory of monotone choice and strategic complementarity (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kyo:wpaper:914
Access Statistics for this paper
More papers in KIER Working Papers from Kyoto University, Institute of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Ryo Okui (). This e-mail address is bad, please contact .