Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7357808 | Journal of Econometrics | 2018 | 20 Pages |
Abstract
This paper studies binary response static games of complete information allowing complex heterogeneity through a random coefficients specification. The main result of the paper establishes nonparametric point identification of the joint density of all random coefficients except those on interaction effects. Under additional independence assumptions, we identify the joint density of the interaction coefficients. Moreover, we prove that in the presence of covariates that are common to both players, the player-specific coefficient densities are identified, while the joint density of all random coefficients is not point-identified. However, we do provide bounds on counterfactual probabilities that involve this joint density.
Keywords
Related Topics
Physical Sciences and Engineering
Mathematics
Statistics and Probability
Authors
Fabian Dunker, Stefan Hoderlein, Hiroaki Kaido, Robert Sherman,