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Moment Inequalities and Partial Identification in Industrial Organization

Author

Listed:
  • Brendan Kline
  • Ariel Pakes
  • Elie Tamer

Abstract

We review approaches to identification and inference on models in Industrial Organization with partial identification and/or moment inequalities. Often, such approaches are intentionally built directly on assumptions of optimizing behavior that are credible in Industrial Organization settings, while avoiding the use of strong modeling and measurement assumptions that may not be warranted. The result is an identified set for the object of interest, reflecting what the econometrician can learn from the data and assumptions. The chapter formally defines identification, reviews the assumptions underlying the identification argument, and provides examples of their use in Industrial Organization settings. We then discuss the corresponding statistical inference problem paying particular attention to practical implementation issues.

Suggested Citation

  • Brendan Kline & Ariel Pakes & Elie Tamer, 2021. "Moment Inequalities and Partial Identification in Industrial Organization," NBER Working Papers 29409, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29409
    Note: IO
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    Cited by:

    1. Emir Malikov & Shunan Zhao & Jingfang Zhang, 2024. "A System Approach to Structural Identification of Production Functions with Multi-Dimensional Productivity," Advances in Econometrics, in: Essays in Honor of Subal Kumbhakar, volume 46, pages 211-263, Emerald Group Publishing Limited.
    2. , 2023. "Price Competition and Endogenous Product Choice in Networks: Evidence from the US airline Industry," Working Papers 950, Queen Mary University of London, School of Economics and Finance.
    3. Toru Kitagawa & Guanyi Wang, 2023. "Individualized Treatment Allocation in Sequential Network Games," Papers 2302.05747, arXiv.org, revised Jul 2024.

    More about this item

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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