Article ID: | iaor200954160 |
Country: | United States |
Volume: | 33 |
Issue: | 2 |
Start Page Number: | 301 |
End Page Number: | 314 |
Publication Date: | May 2008 |
Journal: | Mathematics of Operations Research |
Authors: | Mirman Leonard J, Ruble Richard |
Keywords: | behaviour |
This paper explores and explains the application of the lattice theoretic approach to classic comparative statics in consumer theory. Through examples of preferences that are not quasiconcave, or not differentiable, or not continuous, the approach is shown to characterize income effects more powerfully than the standard approach. The underlying partial order is key to applying the method. Therefore, several adapted partial orders are introduced and discussed.