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Alternative Models for Moment Inequalities

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  • A. Pakes

Abstract

Behavioral choice models generate inequalities which, when combined with additional assumptions, can be used as a basis for estimation. This paper considers two sets of such assumptions and uses them in two empirical examples. The second example examines the structure of payments resulting from the upstream interactions in a vertical market. We then mimic the empirical setting for this example in a numerical analysis which computes actual equilibria, examines how their characteristics vary with the market setting, and compares them to the empirical results. The final section uses the numerical results in a Monte Carlo analysis of the robustness of the two approaches to estimation to their underlying assumptions.

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Bibliographic Info

Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 78 (2010)
Issue (Month): 6 (November)
Pages: 1783-1822

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Handle: RePEc:ecm:emetrp:v:78:y:2010:i:6:p:1783-1822

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Cited by:
  1. Donald W.K. Andrews & Xiaoxia Shi, 2011. "Nonparametric Inference Based on Conditional Moment Inequalities," Cowles Foundation Discussion Papers 1840RR, Cowles Foundation for Research in Economics, Yale University, revised Oct 2013.
  2. Aguirregabiria, Victor & Clark, Robert & Wang, Hui, 2014. "Diversification of Geographic Risk in Retail Bank Networks: Evidence from Bank Expansion after the Riegle-Neal Act," CEPR Discussion Papers 9816, C.E.P.R. Discussion Papers.
  3. Smith, Howard & Thomassen, Øyvind, 2012. "Multi-category demand and supermarket pricing," International Journal of Industrial Organization, Elsevier, vol. 30(3), pages 309-314.
  4. Magnac, Thierry, 2014. "Identification partielle: méthodes et conséquences pour les applications empiriques," TSE Working Papers 14-458, Toulouse School of Economics (TSE).
  5. Eric Weese, 2013. "Political Mergers as Coalition Formation: An Analysis of the Heisei Municipal Amalgamations," Working Papers 1022, Economic Growth Center, Yale University.
  6. Martin Gaynor & Robert J Town, 2012. "Competition in Health Care Markets," The Centre for Market and Public Organisation 12/282, Department of Economics, University of Bristol, UK.
  7. Weese, Eric, 2013. "Political Mergers as Coalition Formation: An Analysis of the Heisei Municipal Amalgamations," Working Papers 113, Yale University, Department of Economics.
  8. Kate Ho & Ariel Pakes, 2013. "Hospital Choices, Hospital Prices and Financial Incentives to Physicians," NBER Working Papers 19333, National Bureau of Economic Research, Inc.
  9. Eric Weese, 2011. "Political Mergers as Coalition Formation," Working Papers 997, Economic Growth Center, Yale University.
  10. Martin Gaynor & Kate Ho & Robert Town, 2014. "The Industrial Organization of Health Care Markets," NBER Working Papers 19800, National Bureau of Economic Research, Inc.
  11. Ahn, Dae-Yong, 2012. "A multivariate discrete choice method based on inequality restrictions," Economics Letters, Elsevier, vol. 115(3), pages 516-518.
  12. A. Orhun, 2013. "Spatial differentiation in the supermarket industry: The role of common information," Quantitative Marketing and Economics, Springer, vol. 11(1), pages 3-37, March.
  13. Victor Chernozhukov & Denis Chetverikov & Kengo Kato, 2013. "Testing many moment inequalities," CeMMAP working papers CWP65/13, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  14. Denis Chetverikov, 2012. "Adaptive test of conditional moment inequalities," CeMMAP working papers CWP36/12, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.

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