Economics at your fingertips  

Causal discourse in a game of incomplete information

Halbert White, Haiqing Xu () and Karim Chalak ()

Journal of Econometrics, 2014, vol. 182, issue 1, 45-58

Abstract: Notions of cause and effect are fundamental to economic explanation. Although concepts such as price effects are intuitive, rigorous foundations justifying causal discourse in the wide range of economic settings remain lacking. We illustrate this deficiency using an N-bidder private-value auction, posing causal questions that cannot be addressed within existing frameworks. We extend the frameworks of Pearl (2000) and White and Chalak (2009) to introduce topological settable systems (TSS), a causal framework capable of delivering the missing answers. Particularly, TSS accommodate choices belonging to general function spaces. Our analysis suggests how TSS enable causal discourse in various areas of economics.

Keywords: Auction; Causality; Game of incomplete information; Simultaneous equations; Structural equations (search for similar items in EconPapers)
JEL-codes: C30 C70 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Causal Discourse in a Game of Incomplete Information (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.jeconom.2014.04.007

Access Statistics for this article

Journal of Econometrics is currently edited by T. Amemiya, A. R. Gallant, J. F. Geweke, C. Hsiao and P. M. Robinson

More articles in Journal of Econometrics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2022-06-27
Handle: RePEc:eee:econom:v:182:y:2014:i:1:p:45-58