Paradox of identification, Game Theory

Discussion in the preceding section suggests that if we want to measure a given hnction belonging to a simultaneous-equations model, the hnction must be fairly stable over the sample period, that is, it must shift within a smaller range as compared with other relationships of the same model. In the last section we have shown that we can measure the supply function when it is fairly stable and the demand is shifting similarly we can measure the demand hnction if it is fairly stable while the supply hnction shows adequate variability. It can happen when the factor causing shift in one particular function is absent in another function. In other words, in order to identify the demand function, some factors absent from it but included in 'the supply function (or in other relations of the system) must be changing over the period of the sample.

Similarly, we can trace the supply function if it is fairly stable while demand shows enough variability. This implies that if the supply function is to be identified, some variables absent from it but affecting the demand function must be changing.

Posted Date: 4/4/2013 3:08:15 AM | Location : United States







Related Discussions:- Paradox of identification, Assignment Help, Ask Question on Paradox of identification, Get Answer, Expert's Help, Paradox of identification Discussions

Write discussion on Paradox of identification
Your posts are moderated
Related Questions
In a positive add game, the combined payoffs of all players aren't identical in each outcome of the sport. This differs from constant add (or zero add) games during which all outco

I have a problem with an exercise about Cournot game. It is very complex and it is composed by different question and it is impossible for me to write the complete text. I need som


I have an assignment in which I have to invent a new international trade theory. For me, the absolute advantage of Adam Smith is really good, and I want to find a solution if a cou

in a rectangular game pay off matrix of player a is as follows B1 B2 A1 5 7 A2 4 0 salve the game write down the pay off matrix of B and then solve the game.

Assuming that there are only 2 airline companies in the world, Delta and US Airways, what is the ((Nash) Equilibrium) or price that each company in the following matrix will charge

A sub game excellent Nash equilibrium is an equilibrium such that players' methods represent a Nash equilibrium in each sub game of the initial game. it should be found by backward

Consider a game in which player 1 chooses rows, player 2 chooses columns and player 3 chooses matrices. Only Player 3''s payoffs are given below. Show that D is not a best response

Scenario To determine who is needed to try to to the nightly chores, 2 youngsters simultaneously build one among 3 symbols with their fists - a rock, paper, or scissors. straigh

Write a bouncing ball video game. The game is similar to the one described and depicted in The balls bounce within the screen where the two horizontal walls are fixed. The two v