Suppose that a target function is monotonic, namely, weakly increasing, and
an original estimate of the target function is available, which is not weakly
increasing. Many common estimation methods used in statistics produce such
estimates. We show that these estimates can always be improved with no harm
using rearrangement techniques: The rearrangement methods, univariate and
multivariate, transform the original estimate to a monotonic estimate, and the
resulting estimate is closer to the true curve in common metrics than the
original estimate.
In this paper, we focus on efficient risk-sharing rules for the concave
dominance order. For a univariate risk, it follows from a comonotone dominance
principle, due to Landsberger and Meilijson [25], that efficiency is
characterized by a comonotonicity condition. The goal of this paper is to
generalize the comonotone dominance principle as well as the equivalence
between efficiency and comonotonicity to the multi-dimensional case.