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Multiplicity of Equilibria and Information Structures in Empirical Games: Challenges and Prospects

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Listed:
  • Ron N. Borkovsky
  • Paul B. Ellickson
  • Brett R. Gordon
  • Victor Aguirregabiria
  • Gardete Pedro

Abstract

Empirical models of strategic games are central to much analysis in marketing and economics. However, two challenges in applying these models to real world data are that such models often admit multiple equilibria and that they require strong informational assumptions. The first implies that the model does not make unique predictions about the data, and the second implies that results may be driven by strong a priori assumptions about the informational setup. This article summarizes recent work that seeks to address both issues and suggests some avenues for future research.

Suggested Citation

  • Ron N. Borkovsky & Paul B. Ellickson & Brett R. Gordon & Victor Aguirregabiria & Gardete Pedro, 2014. "Multiplicity of Equilibria and Information Structures in Empirical Games: Challenges and Prospects," Working Papers tecipa-510, University of Toronto, Department of Economics.
  • Handle: RePEc:tor:tecipa:tecipa-510
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    References listed on IDEAS

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    Cited by:

    1. Pavel Kireyev, 2016. "Markets for Ideas: Prize Structure, Entry Limits, and the Design of Ideation Contests," Harvard Business School Working Papers 16-129, Harvard Business School.
    2. Sanchez Villalba, Miguel, 2015. "Global inspection games," Journal of Public Economics, Elsevier, vol. 128(C), pages 59-72.
    3. Victor Aguirregabiria & Jihye Jeon, 2018. "Firms' Beliefs and Learning: Models, Identification, and Empirical Evidence," Working Papers tecipa-620, University of Toronto, Department of Economics.

    More about this item

    Keywords

    Empirical games; Structural estimation; Multiple Equilibria; Biased Beliefs; Information structures; Learning in games; Identification;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C57 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Econometrics of Games and Auctions
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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