Strict Monotonicity in Comparative Statics

Aaron S. Edlin and Chris Shannon.
Authors registered in the RePEc Author Service: Aaron Edlin () and Chris Shannon ()

No 95-238, Economics Working Papers from University of California at Berkeley

Abstract: This note provides sufficient conditions to draw strict monotone comparative statics conclusions in optimization problems. These results extend the lattice-theoretic results of Milgrom and Shannon (1994) by imposing a stronger differential version of the single crossing property and arguing from first- order conditions. We illustrate the importance of these results through examples involving holdup problems and optimal tax problems.

Date: 1995-07-01
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Journal Article: Strict Monotonicity in Comparative Statics (1998)
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