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Comparative Statics,Informativeness, and the Interval Dominance Order
Authors:John K.‐H. Quah  Bruno Strulovici
Abstract:We identify a new way to order functions, called the interval dominance order, that generalizes both the single crossing property and a standard condition used in statistical decision theory. This allows us to provide a unified treatment of the major theorems on monotone comparative statics with and without uncertainty, the comparison of signal informativeness, and a non‐Bayesian theorem on the completeness of increasing decision rules. We illustrate the concept and results with various applications, including an application to optimal stopping time problems where the single crossing property is typically violated.
Keywords:Single crossing property  interval dominance order  supermodularity  comparative statics  optimal stopping time  capital deepening  complete class theorem  statistical decision theory  informativeness
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