Monotone Comparative Statics without Lattices
Yeon-Koo Che
Jinwoo Kim
Fuhito Kojima
Main:28 Pages
2 Figures
Bibliography:2 Pages
Appendix:25 Pages
Abstract
The theory of Monotone Comparative Statics (MCS) has traditionally required a lattice structure, excluding certain multidimensional environments such as mixed-strategy games where this property fails. We show that this structure is not essential. We introduce a weaker notion, the pseudo-lattice property, and preserve the theory's core results by generalizing the MCS theorems for individual choice and Tarski's fixed-point theorem. Our framework expands comparative statics to pseudo quasi-supermodular games. Crucially, it enables the first MCS analysis of mixed-strategy Nash equilibria and trembling-hand perfect equilibria.
View on arXivComments on this paper
