Yu-Chin Hsu, Tong Li, Chu-An Liu, Hidenori Takahashi
arXiv 8 Apr 2026 · Econometrics
arXiv:2604.06643 · PDF · DOI · OpenAlex · Extracted main text
This paper develops a unified framework for testing monotonicity of Bayesian Nash equilibrium strategies in unobserved types in games of incomplete information. We show that, under symmetric independent private types, monotonicity of differentiable equilibrium strategies is equivalent to monotonicity of a quasi-inverse strategy identified from observed actions. This allows the problem to be reformulated as testing a countable set of moment inequalities involving unconditional expectations. We propose a Cramer-von Mises-type statistic with bootstrap critical values. The method accommodates covariates and game heterogeneity. Monte Carlo simulations demonstrate finite-sample performance, and an application to procurement auctions illustrates cartel detection.
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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.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Guerre, Emmanuel and Perrigne, Isabelle and Vuong, Quang (2000) Optimal Nonparametric Estimation of First-Price Auctions | 1.000 | 9 | 3 | 100% |
| 2 | Aaltio, Aapo and Buri, Riku and Jokelainen, Antto and Lundberg, Johan (2025) Complementary bidding and cartel detection: Evidence from Nordic asphalt markets | 1.000 | 5 | 3 | 100% |
| 3 | Brendan Kline (2025) Identification of Incomplete Information Games in Monotone Equilibrium | 0.874 | 6 | 2 | 100% |
| 4 | Athey, Susan (2001) Single Crossing Properties and the Existence of Pure Strategy Equilibria in Games of Incomplete Information | 0.874 | 5 | 2 | 100% |
| 5 | Liu, Nianqing and Vuong, Quang (2021) Nonparametric Tests for Monotonicity of Strategies in Games of Incomplete Information | 0.874 | 5 | 2 | 100% |
| 6 | Yu-Chin Hsu and Chu-An Liu and Xiaoxia Shi (2019) Testing Generalized Regression Monotonicity self | 0.855 | 8 | 4 | 62% |
| 7 | Hsu, Yu-Chin and Shen, Shu (2021) Testing Monotonicity of Conditional Treatment Effects under Regression Discontinuity Designs self | 0.822 | 9 | 4 | 56% |
| 8 | Larsen, Bradley J. and Zhang, Anthony Lee (2018) A Mechanism Design Approach to Identification and Estimation | 0.811 | 4 | 2 | 100% |
| 9 | Haile, Philip A.\ and Hong, Han and Shum, Matthew (2003) Nonparametric Tests for Common Values at First-Price Sealed-Bid Auctions | 0.737 | 3 | 3 | 67% |
| 10 | Ma, Jun and Marmer, Vadim and Shneyerov, Artyom and Xu, Pai (2021) Monotonicity-Constrained Nonparametric Estimation and Inference for First-Price Auctions | 0.737 | 3 | 3 | 67% |
Showing the top 10 of 53 scored citations.