Econometric Analysis of Games with Multiple Equilibria

Aureo de Paula

Annual Review of Economics, 2013, vol. 5, issue 1, 107-131

Abstract: This article reviews the recent literature on the econometric analysis of games in which multiple solutions are possible. Multiplicity does not necessarily preclude the estimation of a particular model (and, in certain cases, even improves its identification), but ignoring it can lead to misspecifications. The review starts with a general characterization of structural models that highlights how multiplicity affects the classical paradigm. Because the information structure is an important guide to identification and estimation strategies, I discuss games of complete and incomplete information separately. Although many of the techniques discussed here can be transported across different information environments, some are specific to particular models. Models of social interactions are also surveyed. I close with a brief discussion of postestimation issues and research prospects.

Keywords: identification; multiplicity; social interactions (search for similar items in EconPapers)
JEL-codes: C1 C3 C7 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (76)

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Related works:
Working Paper: Econometric analysis of games with multiple equilibria (2012)
Working Paper: Econometric analysis of games with multiple equilibria (2012)
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