Lecture notes: Entry and discrete games II

As we will see, in this simple entry game, multiple equilibria are a typical problem. A literature has pointed out how, typically, the possibility of multiple equilibria in the underlying game leads to the partial identification of the structural model parameters.1 This means that there are multiple values of the structural model parameters which are consistent with the observed data. Econometrically, the estimating equations in these types of settings typically take the form of “moment inequalities”, and a very large literature has developed regarding inference with moment inequalities. These lecture notes will cover these topics.