Identification of Potential Games and Demand Models for Bundles / Jeremy T. Fox, Natalia Lazzati.

Format:

Book

Author/Creator:

Fox, Jeremy T.

Contributor:

National Bureau of Economic Research.

Lazzati, Natalia.

Series:

Working Paper Series (National Bureau of Economic Research) no. w18155.

NBER working paper series no. w18155

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2012.

Summary:

This paper studies nonparametric identification in binary choice games of complete information. We allow for correlated unobservables across players. We propose conditions under which the binary choice game is a so-called potential game and impose that the selected equilibrium maximizes its associated potential function. Our framework is formally equivalent to a multinomial choice demand model where a consumer can elect to purchase any bundle of products. We present a separate identification result for two-player games that does not rely on equilibrium selection.

Notes:

Print version record

June 2012.