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dc.contributor.authorPaula, Áureo
dc.contributor.authorRichards-Shubik, Seth
dc.contributor.authorTamer, Elie
dc.date.accessioned2019-10-09T15:56:53Z
dc.date.issued2018
dc.identifier.citationPaula, Áureo, Seth Richards‐Shubik, and Elie Tamer. 2018. Identifying Preferences in Networks With Bounded Degree. Econometrica 86, no. 1: 263-88.en_US
dc.identifier.issn0012-9682en_US
dc.identifier.urihttp://nrs.harvard.edu/urn-3:HUL.InstRepos:41511330*
dc.description.abstractThis paper provides a framework for identifying preferences in a large network where links are pairwise stable. Network formation models present difficulties for identification, especially when links can be interdependent, for example, when indirect connections matter. We show how one can use the observed proportions of various local network structures to learn about the underlying preference parameters. The key assumption for our approach restricts individuals to have bounded degree in equilibrium, implying a finite number of payoff‐relevant local structures. Our main result provides necessary conditions for parameters to belong to the identified set. We then develop a quadratic programming algorithm that can be used to construct this set. With further restrictions on preferences, we show that our conditions are also sufficient for pairwise stability and therefore characterize the identified set precisely. Overall, the use of both the economic model along with pairwise stability allows us to obtain effective dimension reduction.en_US
dc.description.sponsorshipEconomicsen_US
dc.language.isoen_USen_US
dc.publisherThe Econometric Societyen_US
dash.licenseOAP
dc.titleIdentifying Preferences in Networks With Bounded Degreeen_US
dc.typeJournal Articleen_US
dc.description.versionAccepted Manuscripten_US
dc.relation.journalEconometricaen_US
dash.depositing.authorTamer, Elie
dc.date.available2019-10-09T15:56:53Z
dash.workflow.commentsFAR2017en_US
dc.identifier.doi10.3982/ecta13564
dc.source.journalEconometrica
dash.source.volume86;1
dash.source.page263-288
dash.contributor.affiliatedTamer, Elie


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