Set Identification in Models with Multiple Equilibria

S-Tier
Journal: Review of Economic Studies
Year: 2011
Volume: 78
Issue: 4
Pages: 1264-1298

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We propose a computationally feasible way of deriving the identified features of models with multiple equilibria in pure or mixed strategies. It is shown that in the case of Shapley regular normal form games, the identified set is characterized by the inclusion of the true data distribution within the core of a Choquet capacity, which is interpreted as the generalized likelihood of the model. In turn, this inclusion is characterized by a finite set of inequalities and efficient and easily implementable combinatorial methods are described to check them. In all normal form games, the identified set is characterized in terms of the value of a submodular or convex optimization program. Efficient algorithms are then given and compared to check inclusion of a parameter in this identified set. The latter are illustrated with family bargaining games and oligopoly entry games. Copyright 2011, Oxford University Press.

Technical Details

RePEc Handle
repec:oup:restud:v:78:y:2011:i:4:p:1264-1298
Journal Field
General
Author Count
2
Added to Database
2026-01-25