This paper develops identification and estimation methods for dynamic structural models when agents' actions are unobserved by econometricians. We provide conditions under which choice probabilities and latent state transition rules are nonparametrically identified with a continuous state...

This paper develops identification and estimation methods for dynamic structural models when agents' actions are unobserved by econometricians. We provide conditions under which choice probabilities and latent state transition rules are nonparametrically identified with a continuous state...

In an oligopolistic market, socially excessive entry takes place because of business-stealing effect which is a gain to the entrant but not to the industry as a whole. Similarly, in a sunset industry with declining demand, now socially excessive capacity cannnot be dissolved because everyone...