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Single-crossing Condition
In monotone comparative statics, the single-crossing condition or single-crossing property refers to a condition where the relationship between two or more functionsThe property need not only relate to continuous functions but can also similarly describe ordered sets or Lattice (order), lattices. is such that they will only cross once. For example, a mean-preserving spread will result in an altered probability distribution whose cumulative distribution function will intersect with the original's only once. The single-crossing condition was posited in Samuel Karlin's 1968 monograph 'Total Positivity'. It was later used by Peter Diamond (economist), Peter Diamond, Joseph Stiglitz, and Susan Athey, in studying the economics of uncertainty. The single-crossing condition is also used in applications where there are a few agents or types of agents that have preferences over an ordered set. Such situations appear often in information economics, contract theory, social choice and political ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Single Crossing Condition Example
Single may refer to: Arts, entertainment, and media * Single (music), a song release Songs * Single (Natasha Bedingfield song), "Single" (Natasha Bedingfield song), 2004 * Single (New Kids on the Block and Ne-Yo song), "Single" (New Kids on the Block and Ne-Yo song), 2008 * Single (William Wei song), "Single" (William Wei song), 2016 * "Single", by Meghan Trainor from the album ''Meghan Trainor discography#Independent albums, Only 17'' Sports * Single (baseball), the most common type of base hit * Single (cricket), point in cricket * Single (football), Canadian football point * Single-speed bicycle Transportation * Single-cylinder engine, an internal combustion engine design with one cylinder, or a motorcycle using such engine * Single (locomotive), a steam locomotive with a single pair of driving wheels * As a verb: to convert a double-track railway to a single-track railway Other uses * Single (mathematics) (1-tuple), a list or sequence with only one element * Single person, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Social Choice
Social choice theory or social choice is a theoretical framework for analysis of combining individual opinions, preferences, interests, or welfares to reach a ''collective decision'' or ''social welfare'' in some sense.Amartya Sen (2008). "Social Choice,". ''The New Palgrave Dictionary of Economics'', 2nd EditionAbstract & TOC./ref> Whereas choice theory is concerned with individuals making choices based on their preferences, social choice theory is concerned with how to translate the preferences of individuals into the preferences of a group. A non-theoretical example of a collective decision is enacting a law or set of laws under a constitution. Another example is voting, where individual preferences over candidates are collected to elect a person that best represents the group's preferences. Social choice blends elements of welfare economics and public choice theory. It is methodologically individualistic, in that it aggregates preferences and behaviors of individual member ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Brouwer Fixed-point Theorem
Brouwer's fixed-point theorem is a fixed-point theorem in topology, named after L. E. J. (Bertus) Brouwer. It states that for any continuous function f mapping a compact convex set to itself there is a point x_0 such that f(x_0)=x_0. The simplest forms of Brouwer's theorem are for continuous functions f from a closed interval I in the real numbers to itself or from a closed disk D to itself. A more general form than the latter is for continuous functions from a convex compact subset K of Euclidean space to itself. Among hundreds of fixed-point theorems, Brouwer's is particularly well known, due in part to its use across numerous fields of mathematics. In its original field, this result is one of the key theorems characterizing the topology of Euclidean spaces, along with the Jordan curve theorem, the hairy ball theorem, the invariance of dimension and the Borsuk–Ulam theorem. This gives it a place among the fundamental theorems of topology. The theorem is also used for p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
James Mirrlees
Sir James Alexander Mirrlees (5 July 1936 – 29 August 2018) was a British economist and winner of the 1996 Nobel Memorial Prize in Economic Sciences. He was knighted in the 1997 Birthday Honours. Early life and education Born in Minnigaff, Kirkcudbrightshire, Mirrlees was educated at Douglas Ewart High School, then at the University of Edinburgh ( MA in Mathematics and Natural Philosophy in 1957) and Trinity College, Cambridge (Mathematical Tripos and PhD in 1963 with thesis title ''Optimum Planning for a Dynamic Economy'', supervised by Richard Stone). He was a very active student debater. A contemporary, Quentin Skinner, has suggested that Mirrlees was a member of the Cambridge Apostles along with fellow Nobel Laureate Amartya Sen during the period. Economics Between 1968 and 1976, Mirrlees was a visiting professor at the Massachusetts Institute of Technology three times. He was also a visiting professor at the University of California, Berkeley (1986) and Yale Univer ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Michael Spence
Andrew Michael Spence (born November 7, 1943) is a Canadian-American economist and Nobel laureate. Spence is the William R. Berkley Professor in Economics and Business at the Stern School of Business at New York University, and the Philip H. Knight Professor of Management, Emeritus, and Dean, Emeritus, at the Stanford Graduate School of Business. Together with George A. Akerlof and Joseph E. Stiglitz, Spence is a co-recipient of the 2001 Nobel Memorial Prize in Economic Sciences, "for their analyses of markets with asymmetric information." Career Spence is noted for his job-market signaling model, which inspired research into this branch of contract theory. In this model, employees signal their respective skills to employers by acquiring a certain degree of education, which is costly to them. Employers will pay higher wages to more educated employees, because they know that the proportion of employees with high abilities is higher among the educated ones, as it is less costly f ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Single Peaked Preferences
Single-peaked preferences are a class of preference relations. A group of agents is said to have single-peaked preferences over a set of possible outcomes if the outcomes can be ordered along a line such that: # Each agent has a "best outcome" in the set, and - # For each agent, outcomes that are further from his or her best outcome are preferred less. Single-peaked preferences are typical of one-dimensional domains. A typical example is when several consumers have to decide on the amount of public good to purchase. The amount is a one-dimensional variable. Usually, each consumer decides on a certain quantity which is best for him or her, and if the actual quantity is more/less than that ideal quantity, the agent is then less satisfied. With single-peaked preferences, there is a simple truthful mechanism for selecting an outcome: it is to select the median quantity. See the median voter theorem. It is truthful because the median function satisfies the strong monotonicity proper ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Median Voter Theorem
The median voter theorem is a proposition relating to ranked preference voting put forward by Duncan Black in 1948.Duncan Black, "On the Rationale of Group Decision-making" (1948). It states that if voters and policies are distributed along a one-dimensional spectrum, with voters ranking alternatives in order of proximity, then any voting method which satisfies the Condorcet criterion will elect the candidate closest to the median voter. In particular, a majority vote between two options will do so. The theorem is associated with public choice economics and statistical political science. Partha Dasgupta and Eric Maskin have argued that it provides a powerful justification for voting methods based on the Condorcet criterion. Plott's majority rule equilibrium theorem extends this to two dimensions. A loosely related assertion had been made earlier (in 1929) by Harold Hotelling. It is not a true theorem and is more properly known as the median voter theory or median voter model. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Agent (economics)
In economics, an agent is an actor (more specifically, a decision maker) in a model of some aspect of the economy. Typically, every agent makes decisions by solving a well- or ill-defined optimization or choice problem. For example, ''buyers'' (consumers) and ''sellers'' ( producers) are two common types of agents in partial equilibrium models of a single market. Macroeconomic models, especially dynamic stochastic general equilibrium models that are explicitly based on microfoundations, often distinguish households, firms, and governments or central banks as the main types of agents in the economy. Each of these agents may play multiple roles in the economy; households, for example, might act as consumers, as workers, and as voters in the model. Some macroeconomic models distinguish even more types of agents, such as workers and shoppers or commercial banks. The term ''agent'' is also used in relation to principal–agent models; in this case, it refers specifically to some ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Preference (economics)
In economics and other social sciences, preference is the order that an agent gives to alternatives based on their relative utility. A process which results in an "optimal choice" (whether real or theoretical). Preferences are evaluations and concern matters of value, typically in relation to practical reasoning. The character of the preferences is determined purely by a person's tastes instead of the good's prices, personal income, and the availability of goods. However, people are still expected to act in their best (rational) interest. Rationality, in this context, means that when individuals are faced with a choice, they would select the option that maximizes self-interest. Moreover, in every set of alternatives, preferences arise. The belief of preference plays a key role in many disciplines, including moral philosophy and decision theory. The logical properties that preferences possess have major effects also on rational choice theory, which has a carryover effect on all m ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Political Economics
Political economy is the study of how economic systems (e.g. markets and national economies) and political systems (e.g. law, institutions, government) are linked. Widely studied phenomena within the discipline are systems such as labour markets and financial markets, as well as phenomena such as growth, distribution, inequality, and trade, and how these are shaped by institutions, laws, and government policy. Originating in the 16th century, it is the precursor to the modern discipline of economics. Political economy in its modern form is considered an interdisciplinary field, drawing on theory from both political science and modern economics. Political economy originated within 16th century western moral philosophy, with theoretical works exploring the administration of states' wealth; "political" signifying the Greek word ''polity'' and "economy" signifying the Greek word '; household management. The earliest works of political economy are usually attributed to the Briti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Contract Theory
From a legal point of view, a contract is an institutional arrangement for the way in which resources flow, which defines the various relationships between the parties to a transaction or limits the rights and obligations of the parties. From an economic perspective, contract theory studies how economic actors can and do construct contractual arrangements, generally in the presence of information asymmetry. Because of its connections with both agency and incentives, contract theory is often categorized within a field known as law and economics. One prominent application of it is the design of optimal schemes of managerial compensation. In the field of economics, the first formal treatment of this topic was given by Kenneth Arrow in the 1960s. In 2016, Oliver Hart and Bengt R. Holmström both received the Nobel Memorial Prize in Economic Sciences for their work on contract theory, covering many topics from CEO pay to privatizations. Holmström ( MIT) focused more on the connec ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Monotone Comparative Statics
Monotone comparative statics is a sub-field of comparative statics that focuses on the conditions under which endogenous variables undergo monotone changes (that is, either increasing or decreasing) when there is a change in the exogenous parameters. Traditionally, comparative results in economics are obtained using the Implicit Function Theorem, an approach that requires the concavity and differentiability of the objective function as well as the interiority and uniqueness of the optimal solution. The methods of monotone comparative statics typically dispense with these assumptions. It focuses on the main property underpinning monotone comparative statics, which is a form of complementarity between the endogenous variable and exogenous parameter. Roughly speaking, a maximization problem displays complementarity if a higher value of the exogenous parameter increases the marginal return of the endogenous variable. This guarantees that the set of solutions to the optimization proble ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
