A method for implementing counterfactual experiments in models with multiple equilibria
Abstract
This paper proposes a homotopy method for implementing counterfactual experiments in empirical models with multiple equilibria. A key assumption is that the equilibrium selection function does not jump discontinuously between equilibria as we continuously change the structural parameters.Download Info
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Bibliographic Info
Article provided by Elsevier in its journal Economics Letters.
Volume (Year): 114 (2012)
Issue (Month): 2 ()
Pages: 190-194
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Web page: http://www.elsevier.com/locate/ecolet
Related research
Keywords: Structural models with multiple equilibria; Counterfactual experiments; Equilibrium selection; Homotopy methods;Other versions of this item:
- Victor, Aguirregabiria, 2009. "A Method for Implementing Counterfactual Experiments in Models with Multiple Equilibria," MPRA Paper 17805, University Library of Munich, Germany.
- Victor Aguirregabiria, 2009. "A Method for Implementing Counterfactual Experiments in Models with Multiple Equilibria," Working Papers tecipa-381, University of Toronto, Department of Economics.
- C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
- C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Aguirregabiria, Victor & Nevo, Aviv, 2010.
"Recent developments in empirical IO: dynamic demand and dynamic games,"
MPRA Paper
27814, University Library of Munich, Germany.
- Victor Aguirregabiria & Victor Aguirregabiria & Aviv Nevo & Aviv Nevo, 2010. "Recent Developments in Empirical IO: Dynamic Demand and Dynamic Games," Working Papers tecipa-419, University of Toronto, Department of Economics.
- 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.
- Aguirregabiria, Victor & Ho, Chun-Yu, 2010.
"A dynamic game of airline network competition: Hub-and-spoke networks and entry deterrence,"
International Journal of Industrial Organization,
Elsevier, vol. 28(4), pages 377-382, July.
- Victor Aguirregabiria & Chun-Yu Ho, 2009. "A Dynamic Game of Airline Network Competition: Hub-and-Spoke Networks and Entry Deterrence," Working Papers tecipa-379, University of Toronto, Department of Economics.
- Naoaki Minamihashi, 2012. "Natural Monopoly and Distorted Competition: Evidence from Unbundling Fiber-Optic Networks," Working Papers 12-26, Bank of Canada.
- Besanko, David & Doraszelski, Ulrich & Kryukov, Yaroslav, 2011. "The economics of predation: What drives pricing when there is learning-by-doing?," CEPR Discussion Papers 8708, C.E.P.R. Discussion Papers.
- Joao Macieira, 2010. "Oblivious Equilibrium in Dynamic Discrete Games," 2010 Meeting Papers 680, Society for Economic Dynamics.
- Victor Aguirregabiria & Gustavo Vicentini, 2012.
"Dynamic Spatial Competition Between Multi-Store Firms,"
Working Papers
tecipa-457, University of Toronto, Department of Economics.
- Victor Aguirregabiria & Gustavo Vicentini, 2006. "Dynamic Spatial Competition Between Multi-Store Firms," Working Papers tecipa-253, University of Toronto, Department of Economics.
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