Analyses of risk-bearing often assume that agents face only one risk. Agents however usually face several risks and the interaction between them can affect the willingness to bear any one of them. We consider how the introduction of background risk affects the comparative statics predictions of...

Analyses of risk-bearing often assume that agents face only one risk. Agents however usually face several risks and the interaction between them can affect the willingness to bear any one of them. We consider how the introduction of background risk affects the comparative statics predictions of...

This paper analyses comparative statics for first price auctions and all pay auctions with independent private values. In all pay auctions, bidders with low values will respond to a stochastically higher (in the sense of likelihood ratio dominance) distribution of types by playing less...

This paper considers ordered vector spaces with arbitrary closed cones and establishes a number of characterization results with applications to monotone comparative statics (Topkis (1978), Topkis (1998), Milgrom and Shannon (1994)). By appealing to the fundamental theorem of calculus for the...

The relationship between competition and performance-related pay has been analyzed in single-principal-single-agent models. While this approach yields good predictions for managerial pay schemes, the predictions fail to apply for employees at lower tiers of a firm's hierarchy. This paper...