English, Article, Journal or magazine article edition: Comment: The Identification Power of Equilibrium in Simple Games Aguirregabiria, Victor

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Bookmark: http://trove.nla.gov.au/version/97371
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Comment: The Identification Power of Equilibrium in Simple Games
Author
  • Aguirregabiria, Victor
Physical Description
  • preprint
Notes
  • This paper studies the identification of structural parameters in dynamic games when we replace the assumption of Markov Perfect Equilibrium (MPE) with weaker conditions such as rational behavior and rationalizability. The identification of players' time discount factors is of especial interest. I present identification results for a simple two-periods/​two-players dynamic game of market entry-exit. Under the assumption of level-2 rationality (i.e., players are rational and they know that they are rational), a exclusion restriction and a large-support condition on one of the exogenous explanatory variables are sufficient for point-identification of all the structural parameters.
  • Identification; Empirical dynamic discrete games; Rational behavior; Rationalizability.
  • RePEc:pra:mprapa:15987
Language
  • English
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