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New results on the identification of stochastic bargaining models
Journal article   Open access   Peer reviewed

New results on the identification of stochastic bargaining models

Antonio Merlo and Xun Tang
Journal of econometrics, v 209(1), pp 79-93
01 Mar 2019
url
https://doi.org/10.1016/j.jeconom.2018.02.006View
Published, Version of Record (VoR) Restricted

Abstract

Business & Economics Economics Mathematical Methods In Social Sciences Mathematics Mathematics, Interdisciplinary Applications Physical Sciences Science & Technology Social Sciences Social Sciences, Mathematical Methods
We present new identification results for stochastic sequential bargaining models when the data only reports the time of agreement and the evolution of observable states. With no information on the stochastic surplus available for allocation or how it is allocated under agreement, we recover the latent surplus process, the distribution of unobservable states, and the equilibrium outcome in counterfactual contexts. The method we propose, which is constructive and original, can also be adapted to establish identification in general optimal stopping models. (C) 2018 Elsevier B.V. All rights reserved.

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Web of Science research areas
Economics
Mathematics, Interdisciplinary Applications
Social Sciences, Mathematical Methods
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