Abstract
This paper considers ordered vector spaces with arbitrary closed cones and establishes a number of characterization results with applications to monotone comparative statics (Topkis (1978), Topkis (1998), Milgrom and Shannon (1994)). By appealing to the fundamental theorem of calculus for the Henstock-Kurzweil integral, we generalize existing results on increasing differences and supermodularity for C-1 or C-2 functions. None of the results are based on the assumption that the order is Euclidean. As applications we consider a teamwork game and a monopoly union model.
| Original language | English |
|---|---|
| Pages (from-to) | 35 |
| Number of pages | 1 |
| Journal | The B E Journal of Theoretical Economics |
| Volume | 7 |
| Issue number | 1 |
| Publication status | Published - 1 Jan 2007 |
Keywords
- vector lattice
- non-smooth analysis
- ordered vector space
- Henstock-Kurzweil integration
- supermodularity
- increasing differences
- comparative statics