Events Calendar

Join us to hear from Tarun Sabarwal, University of Kansas, presenting, "General Theory of Equilibrium in Models with Complementarities".

Abstract: We unify and generalize the equilibrium theory of foundational models of complementarities used widely
in economics and other disciplines. Widely used results for existence of extremal equilibrium, nonempty
complete lattice structure of the equilibrium set, and monotone comparative statics (MCS) of extremal
equilibria are unified and generalized, subsuming the results for standard and neostandard models as
special cases and allowing for new situations. Structure theorems due to Tarski (1955) and Zhou (1994)
are generalized without using the strong set order or subcompleteness. Defining new set orders, we
formulate new theories for structural comparisons of equilibrium sets, and prove new theorems for MCS
of the infimum equilibrium set, the supremum equilibrium set, and the full equilibrium set. Order
comparability of equilibrium sets provides a new theory of order approximation of equilibria as well.
Our off-the-shelf theorems apply regardless of the manner in which individual choices are made as long
as they satisfy our weak conditions, which are proved to hold in standard and neostandard models.

The Clarence Tow Lectures in Economics Series brings high-profile researchers to Tippie College of Business to present to an audience of faculty, PhD students, and researchers from around the University of Iowa.