Comparative Statics With Linear Objectives: Normality, Complementarity, and Ranking Multi-Prior Beliefs

• 成果类型: Article
• 署名作者: Dziewulski, Pawel; Quah, John K. -H.
• 署名单位: University of Sussex; National University of Singapore
• 刊物名称: ECONOMETRICA
• ISSN/ISSBN: 0012-9682
• DOI: 10.3982/ECTA19738
• 发表日期: 2024
• 页码: 167-200
• 关键词: NORMAL GOODS; ambiguity; preferences; aversion

摘要

We formulate an order over constraint sets A subset of Rl, called the parallelogram order, which guarantees that argmin{p & sdot; x:x is an element of A} increases in the product order as A increases in the parallelogram order, for any vector p is an element of Rl. Using this result, we characterize the utility/production functions that lead to normal demand as well as the closely related class of production functions with marginal costs that increase with factor prices. By generalizing the concept of supermodularity, we also characterize the class of production functions for which factors are complements. In the context of decision-making under uncertainty, our new set order leads to natural generalizations of first-order stochastic dominance in multi-prior models.