Monotone Comparative Statics and Supermodular Games

Advances in supermodular optimization have resulted in the development of a methodological breakthrough called supermodular games. In supermodular games, an increase in a player’s strategy leads to increases in other players ’ strategies as well Despite mathematical rigor, they can effectively characterize various kinds of non-cooperative situations. Supermodular games are based on monotone comparative statics which in turn relies heavily on lattice theory. This paper gives a theoretical overview of monotone comparative statics – including a comparison with traditional comparative statics – and supermodular optimization, and offers an example of supermodular games