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This paper deals with identification of discrete games of incomplete information when we allow for three types of unobservables: payoff‐relevant variables, both players' private information and common knowledge, and nonpayoff‐relevant variables that determine the selection between multiple...
Persistent link: https://www.econbiz.de/10012202889
Borewells for groundwater extraction have proliferated across India, encouraged by massive electricity subsidies. Because the discharges from borewells operating near one another are mutually attenuated, farmers interact strategically with potentially many neighbors in deciding whether and when...
Persistent link: https://www.econbiz.de/10014454237
Imposing equilibrium restrictions provides substantial gains in the estimation of dynamic discrete games. Estimation algorithms imposing these restrictions have different merits and limitations. Algorithms that guarantee local convergence typically require the approximation of high-dimensional...
Persistent link: https://www.econbiz.de/10012795681