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Testing Information Ordering for Strategic Agents

Sukjin Han, Hiroaki Kaido, Lorenzo Magnolfi

arXiv 29 Feb 2024 · Econometrics

arXiv:2402.19425 · PDF · Extracted main text

Abstract

A key primitive of a strategic environment is the information available to players. Specifying a priori an information structure is often difficult for empirical researchers. We develop a test of information ordering that allows researchers to examine if the true information structure is at least as informative as a proposed baseline. We construct a computationally tractable test statistic by utilizing the notion of Bayes Correlated Equilibrium (BCE) to translate the ordering of information structures into an ordering of functions. We apply our test to examine whether hubs provide informational advantages to certain airlines in addition to market power.

Citation extraction

48
references
108
in-text mentions
48
distinct cited
4
self-citations
15,530
main-text words

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Bergemann, D. and S. Morris (2016) Bayes correlated equilibrium and the comparison of information structures in games1.000113100%
2Ciliberto, F. and E. Tamer (2009) Market structure and multiple equilibria in airline markets1.00083100%
3Magnolfi, L. and C. Roncoroni (2023) Estimation of discrete games with weak assumptions on information self1.00053100%
4Tamer, E (2003) Incomplete simultaneous discrete response model with multiple equilibria0.92843100%
5Bresnahan, T. F. and P. C. Reiss (1991) Empirical models of discrete games0.92843100%
6Berry, S. T (1992) Estimation of a Model of Entry in the Airline Industry0.87452100%
7Seim, K (2006) An empirical model of firm entry with endogenous product-type choices0.84333100%
8Beresteanu, A., I. Molchanov, and F. Molinari (2011) Sharp identification regions in models with convex moment predictions0.81142100%
9Andrews, D. W. and G. Soares (2010) Inference for parameters defined by moment inequalities using generalized moment selection0.7374350%
10Berry, S., M. Carnall, and P. T. Spiller (1996) Airline Hubs: Costs, Markups and the Implications of Customer Heterogeneity, Working Paper 5561, National Bureau of Economic Res…0.73732100%

Showing the top 10 of 48 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Identification and Estimation of Dynamic Games with Unknown Information Structure0.64422