Order condition for identification, Game Theory

This condition is based on a counting rule of the variables included and excluded from the particular equation. It is a necessary but no sufficient condition for the identification of an equation. The order condition may be stated as follows.

For an equation ts be identified the total number of variables (endogenous and exogenous) excluded fiom it must be equal to or greater than the number of endogenous variables in the model less one. Given that in a complete model the number of endogenous variables is equal to the number of equations of the model.

Posted Date: 4/4/2013 3:15:00 AM | Location : United States







Related Discussions:- Order condition for identification, Assignment Help, Ask Question on Order condition for identification, Get Answer, Expert's Help, Order condition for identification Discussions

Write discussion on Order condition for identification
Your posts are moderated
Related Questions
A mixed strategy during which the player assigns strictly positive chance to each pure strategy.Morgenstern, Oskar,Coauthor of Theory of Games and Economic Behavior with John von N

Any participant in a very game who (i)  contains a nontrivial set of methods (more than one) and (ii) Selects among the methods primarily based on payoffs. If a player is non

why might an airline offer the following deal: you pay 400 for a round trip ticket from here to orlando, but you only pay 300 per ticket if you stayy in orlando includes a saturday

1  A, Explain how a person can be free to choose but his or her choices are casually determined by past event 2  B , Draw the casual tree for newcomb's problem when Eve can't pe

Paired Prisoners' Dilemma Students can be paired off and instructed to play several ver-sions of a particular game with a prisoners' dilemma structure.Provide each pair with a

Players 1 and 2 are bargaining over how to split one dollar. Both players simultaneously name shares they would like to keep s 1 and s 2 . Furthermore, players' choices have to be

Equilibrium payoffs a) The reward system changes payoffs for Player A, but does not change the equilibrium strategies in the game. Player A still takes the money at the fir

A multiunit auction that during which within which  each winning bidder pays a unique worth which depends on the particular bid placed by every winning participant. Alternatively,


Treating probability as a logic, Thomas Bayes defined the following: Pr(X|Y)=Pr(Y|X)Pr(X)/Pr(Y) For example, probability that the weather was bad given that our friends playe