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We derive the empirical content of Nash equilibrium in 2×2 games of perfect information, including duopoly entry and coordination games. The derived bounds are nonparametric intersection bounds and are simple enough to lend themselves to existing inference methods. Implications of pure strategy...
Persistent link: https://www.econbiz.de/10011166108
We derive the empirical content of an instrumental variables model of sectoral choice with discrete outcomes. The partial identification results extend existing work on sharp bounds in binary choice threshold crossing models in allowing sector specific unobserved heterogeneity. Assumptions on...
Persistent link: https://www.econbiz.de/10010897048