Moment Inequalities and Partial Identification in Industrial Organization

121 Pages Posted: 1 Nov 2021 Last revised: 9 Nov 2024

See all articles by Brendan Kline

Brendan Kline

University of Texas at Austin

Ariel Pakes

Harvard University; National Bureau of Economic Research (NBER)

Elie T. Tamer

Harvard University

Date Written: October 2021

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

Kline, Brendan and Pakes, Ariel and Tamer, Elie T., Moment Inequalities and Partial Identification in Industrial Organization (October 2021). NBER Working Paper No. w29409, Available at SSRN: https://ssrn.com/abstract=3953936

Brendan Kline (Contact Author)

University of Texas at Austin ( email )

2317 Speedway
Austin, TX Texas 78712
United States

Ariel Pakes

Harvard University ( email )

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Elie T. Tamer

Harvard University ( email )

1875 Cambridge Street
Cambridge, MA 02138
United States

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