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In many set identified models, it is difficult to obtain a tractable characterization of the identified set, therefore, empirical works often construct confidence region based on an outer set of the identified set. Because an outer set is always a superset of the identified set, this practice is...
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In this paper, we model network formation and network interactions under a unified framework. The key feature of our model is to allow individuals to respond to incentives that stem from interaction benefits of certain activities when they choose friends (network links), while capturing...
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