Testing for complementarity when strategies are dichotomous

Eugenio Miravete () and José C. Pernías

Economics Letters, 2010, vol. 106, issue 1, 28-31

Abstract: We show that it is not possible to extend Arora (1996) reduced form test for the existence of complementarity to evaluate the relationship between a couple of dichotomous strategies as it leads to an incoherent simultaneous discrete response model.

Keywords: Dichotomous; strategies; Complementarity; Incoherent; models (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:106:y:2010:i:1:p:28-31

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