Abstract
We introduce the first nonparametric tests for the presence and the sign of strategic interaction effects in discrete 2 × 2 games of complete information under the assumption of rationalizable behavior, which includes Nash Equilibrium as a special case but allows for incorrect beliefs. Our tests assume the existence of an observable covariate with a positive stochastic relationship with the payoffs of a particular player.
Original language | English (US) |
---|---|
Pages (from-to) | 149-153 |
Number of pages | 5 |
Journal | Economics Letters |
Volume | 181 |
DOIs | |
State | Published - Aug 2019 |
All Science Journal Classification (ASJC) codes
- Finance
- Economics and Econometrics