In mathematical economics, Topkis's theorem, named after Donald M. Topkis, is a result used to establish comparative statics, describing how the optimal choice for a decision variable changes as some feature of the underlying environment changes. Its particular value lies in dispensing with the differentiability, concavity, and uniqueness assumptions that comparative-statics arguments traditionally require, so it applies to discrete, kinked, or nonconcave optimization problems where classical calculus-based methods cannot be used.
Facts
StatementThe theorem allows researchers to understand how the optimal set for a choice variable changes when a feature of the environment changes. 1 Classification
Statement FormCharacterization Theorem 1 Connections
Sources
1. Topkis's theorem - Wikipedia
Introduction, sentence 2
The theorem allows researchers to understand how the optimal set for a choice variable changes when a feature of the environment changes.
In Group: Economic Theory, Lead paragraph
In mathematical economics, Topkis's theorem is a result that is useful for establishing comparative statics.
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