What question did this study set out to answer?

To identify the necessary and sufficient conditions under which the set of optimal solutions to an optimization problem changes monotonically with shifts in underlying parameters.

January 1, 1994Econometrica

Monotone Comparative Statics

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Authors

PMPaul MilgromNorthwestern University CSChris ShannonBerkeley College

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Implication

Theoretical analysis reveals necessary and sufficient conditions for monotonic solutions in optimization problems, suggesting widespread applications across microeconomic and game-theoretic models.

Key Points

To identify the necessary and sufficient conditions under which the set of optimal solutions to an optimization problem changes monotonically with shifts in underlying parameters.
Derived formal mathematical criteria establishing monotonic behavior of solution sets with respect to model parameters.
Formulated practical analytical methods to verify monotonic comparative statics conditions across standard economic structures.
Characterized a general necessary and sufficient condition that guarantees monotone comparative statics in optimization problems.
Demonstrated analytical tractability by applying the criteria to competitive firm, monopoly, and Bertrand oligopoly models.
Extended application of the framework to consumer theory, macroeconomic growth models, game theory, and general equilibrium systems.

Cite This Study

Milgrom et al. (1994) studied this question.

synapsesocial.com/papers/69d9df9a387cf70698685b64 https://doi.org/10.2307/2951479

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Implication

Theoretical analysis reveals necessary and sufficient conditions for monotonic solutions in optimization problems, suggesting widespread applications across microeconomic and game-theoretic models.

Monotone Comparative Statics

Discussion

Member takes

Implication

Key Points

Cite This Study

Monotone Comparative Statics

Discussion

Member takes

Implication

Key Points

Cite This Study

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