TY  - JOUR
AU  - Fox,Jeremy T.
AU  - Lazzati,Natalia
TI  - Identification of Potential Games and Demand Models for Bundles
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 18155
PY  - 2012
Y2  - June 2012
UR  - http://www.nber.org/papers/w18155
L1  - http://www.nber.org/papers/w18155.pdf
N1  - Author contact info:
Jeremy T. Fox
Economics Department
University of Michigan
238 Lorch Hall
611 Tappan Ave
Ann Arbor, MI 48109
Tel: 734-330-2854
Fax: 734-274-2331
E-Mail: jeremyfox@gmail.com

Natalia Lazzati
Economics Department
University of Michigan
238 Lorch Hall
611 Tappan Ave
Ann Arbor, MI 48109
E-Mail: nlazzati@umich.edu
AB  - This paper studies nonparametric identification in binary choice games of complete information. We allow for correlated unobservables across players. We propose conditions under which the binary choice game is a so-called potential game and impose that the selected equilibrium maximizes its associated potential function. Our framework is formally equivalent to a multinomial choice demand model where a consumer can elect to purchase any bundle of products. We present a separate identification result for two-player games that does not rely on equilibrium selection.
ER  -