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Nonparametric Identification of Dynamic Games with Discrete and Continuous Choices

Author

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  • Jason R. Blevins

    (Department of Economics, Ohio State University)

Abstract

This paper shows that the payoff functions in a class of dynamic games of incomplete information are nonparametrically identified under standard assumptions currently used in applied work. Models of this kind are prevalent in empirical industrial organization where, for example, firms in oligopolistic industries make discrete entry and exit decisions followed by continuous investment or pricing decisions. We also provide results for single-agent models, a leading special case which is commonly employed in applied microeconomics more generally.

Suggested Citation

  • Jason R. Blevins, 2010. "Nonparametric Identification of Dynamic Games with Discrete and Continuous Choices," Working Papers 10-02, Ohio State University, Department of Economics.
    • Handle: RePEc:osu:osuewp:10-02
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    File URL: http://www.econ.ohio-state.edu/pdf/blevins/wp10-02.pdf
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    References listed on IDEAS

    as
    1. Patrick Bajari & C. Lanier Benkard & Jonathan Levin, 2007. "Estimating Dynamic Models of Imperfect Competition," Econometrica, Econometric Society, vol. 75(5), pages 1331-1370, September.
    2. S. Darolles & Y. Fan & J. P. Florens & E. Renault, 2011. "Nonparametric Instrumental Regression," Econometrica, Econometric Society, vol. 79(5), pages 1541-1565, September.
    3. Christopher Timmins, 2002. "Measuring the Dynamic Efficiency Costs of Regulators' Preferences: Municipal Water Utilities in the Arid West," Econometrica, Econometric Society, vol. 70(2), pages 603-629, March.
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    Cited by:

    1. Jason R. Blevins, 2015. "Structural Estimation Of Sequential Games Of Complete Information," Economic Inquiry, Western Economic Association International, vol. 53(2), pages 791-811, April.
    2. Nathan Yang, 2011. "An Empirical Model of Industry Dynamics with Common Uncertainty and Learning from the Actions of Competitors," Working Papers 11-16, NET Institute.

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    More about this item

    Keywords

    dynamic games; dynamic discrete choice; nonparametric identification;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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