A social interaction model with ordered choices

Xiaodong Liu and Jiannan Zhou

Economics Letters, 2017, vol. 161, issue C, 86-89

Abstract: We introduce a social interaction model with ordered choices. We provide a micro-foundation for the econometric model based on an incomplete information network game, and characterize the sufficient condition for the existence of a unique equilibrium of the game. We discuss the identification of the model, and propose to estimate the model by the NFXP and NPL algorithms. We conduct Monte Carlo simulations to investigate the finite sample performance of these two estimation methods.

Keywords: Ordered probit and logit models; Rational expectations; Social networks (search for similar items in EconPapers)
JEL-codes: C31 C35 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:161:y:2017:i:c:p:86-89

DOI: 10.1016/j.econlet.2017.09.027

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