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Seoul Journal of Economics - Vol. 14 , No. 1
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Seoul Journal of Economics - Vol. 14, No. 1, pp. 15-30
Abbreviation: SJE
ISSN: 1225-0279 (Print)
Print publication date 28 Feb 2001
Received 03 Nov 2000 Revised 02 May 2001

Comparative Statics under Uncertainty for a Decision Model with Two Choice Variables
Gyemyung Choi ; Iltae Kim
Head of Research Department, Financial Supervisory Service, Seoul, Republic of Korea, Tel: +82-2-3786-7880 (choi0612@fss.or.kr)
Associate Professor, Department of Economics, Chonnam National University, Kwangju 500-757, Republic of Korea, Tel: +82-62-530-1550 (kit2603@chonnam.ac.kr)

JEL Classification: D81

Abstract

This paper considers a class of monotone comparative statics problems that satisfies two distinct kinds of constraints on the decision model, where a single decision-maker has two-dimensional choice set. By using a general model we can present a set of sufficient conditions for the first choice variable to be decreased but the second choice to be increased in response to three types of changes in randomness.

Keywords: Two-dimensional choice set, General model, Changes in randomness
Acknowledgments

The authors are grateful to three anonymous referees for helpful suggestions and comments on an earlier version of the paper.

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