Abstract
We identify a new way to order functions, called the interval dominance order, that generalizes both the single crossing property and a standard condition used in statistical decision theory. This allows us to provide a unified treatment of the major theorems on monotone comparative statics with and without uncertainty, the comparison of signal informativeness, and a non-Bayesian theorem on the completeness of increasing decision rules. We illustrate the concept and results with various applications, including an application to optimal stopping time problems where the single crossing property is typically violated.
Original language | English (US) |
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Pages (from-to) | 1949-1992 |
Number of pages | 44 |
Journal | Econometrica |
Volume | 77 |
Issue number | 6 |
DOIs | |
State | Published - Nov 2009 |
Keywords
- Capital deepening
- Comparative statics
- Complete class theorem
- Informativeness
- Interval dominance order
- Optimal stopping time
- Single crossing property
- Statistical decision theory
- Supermodularity
ASJC Scopus subject areas
- Economics and Econometrics