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We propose a set-estimation approach to supermodular games using the restrictons of rationalizable strategies, which is a weaker solution concept than Nash equilibrium. The set of rationalizable strategies of a supermodular game forms a complete lattice, and are bounded above and below by two extremal Nash equilibria. We use a well-known alogrithm to compute the two extremal equilibria, and then construct moment inequalities for set estimation of the supermodular game. Finally, we conduct Monte Carlo experiments to illustrate how the estimated confidence sets vary in response to changes in the data generating process.

We make use of rich microdata from the Belgian MEqIn survey, which contains detailed information on individual consumption, public consumption inside households, and time use. We explain the observed household behavior by means of a collective model that integrates marriage market restrictions on intrahousehold allocation patterns. We adopt a revealed preference approach that abstains from any functional form assumptions on individual utility functions or intrahousehold decision processes. This allows us to (set) identify the sharing rule, which governs the intrahousehold sharing of time and money, and to quantify economies of scale within households. We use these results to conduct a robust individual welfare and inequality analysis, hereby highlighting the important role of detailed consumption and time use data.

We provide a geometric formulation of the problem of identification of the matching surplus function and we show how the estimation problem can be solved by the introduction of a generalized entropy function over the set of matchings.

We propose a methodology for estimating preference parameters in matching models. Our estimator applies to repeated observations of matchings among a fixed group of individuals. Our estimator is based on the stability conditions in matching models; we consider both transferable (TU) and nontransferable utility (NTU) models. In both cases, the stability conditions yield moment inequalities which can be taken to the data. The preference parameters are partially identified. We consider simple illustrative examples, and also an empirical application to aggregate marriage markets.

In this article we design an econometric test for monotone comparative statics (MCS) often found in models with multiple equilibria. Our test exploits the observable implications of the MCS prediction: that the extreme (high and low) conditiona l quantiles of the dependent variable increase monotonically with the explanatory variable. The main contribution of the article is to derive a likelihood-ratio test, which to the best of our knowledge is the first econometric test of MCS proposed in the literature. The test is an asymptotic “chi-bar squared” test for order restrictions on intermediate conditional quantiles. The key features of our approach are: (1) we do not need to estimate the underlying nonparametric model relating the dependent and explanatory variables to the latent disturbances; (2) we make few assumptions on the cardinality, location, or probabilities over equilibria. In particular, one can implement our test without assuming an equilibrium selection rule.

Revealed preference axioms provide a simple way of testing data from consumers or firms for consistency with optimizing behavior. The resulting non-parametric tests are very attractive, since they do not require any ad hoc functional form assumptions. A weakness of such tests, however, is that they are non-stochastic. In this paper, we provide a detailed analysis of two non-parametric approaches that can be used to derive statistical tests for utility maximization, which account for random measurement errors in the observed data. These same approaches can also be used to derive tests for separability of the utility function.

Firms pursue a number of redeployment strategies in order to achieve growth and create value for their stakeholders. While the majority of previous research focuses on how firms create synergic value by sharing resources across multiple business units, we lack a systematic analysis of the determinants of different redeployment strategies. In this paper, we develop a theoretical framework that allows us to systematically investigate how intrinsic resource characteristics affect resource redeployment strategies. Our framework identifies four critical characteristics of resources, that is, fungibility, scale-free nature, decomposability, and tradability. We develop a number of predictions that provide guidance for researchers to identify the optimal resource redeployment strategy appropriate for resources with a certain set of characteristics.

Individual rationality sometimes leads to collectively irrational outcomes, a fundamental problem in the social and life sciences that has attracted sustained attention from experimentalists in sociology, psychology, biology, and economics. But what is it about individual rationality that sometimes gets us into trouble? Is the problem the egoistic pursuit of individual self-interest? Or does the problem with individual rationality lie elsewhere? To find an answer, this chapter closely examines the theoretical and experimental literature on social dilemmas, to see how researchers identify the source of the problem. The review suggests that the prevailing theory wrongly points to egoism as the problem. Failing to do what is best for everyone can also happen among rational altruists, and sometimes egoism is needed to prevent it. The chapter concludes by pointing to what we believe is the fundamental problem – a tension not between individual self-interest and collective welfare, but between individual autonomy and collective interdependence.

The purpose of this paper is to analyze the specific relationship between information and communication technologies (ICT) and high performance work practices (HPWP) at employee level, both generally and per job category.

Generalized ordered logit and logit models are estimated in relation to data from 31 European countries using the fourth European Working Conditions Survey.

This paper reveals a generally positive association between ICT use and HPWP participation by workers but different results when ICT and HPWP variables are analysed separately. Worker autonomy and participation in autonomous teams are linked to greater ICT use, but the cases of job rotation and task variety are not so clear. Additionally, the authors find how worker occupation conditions such links and note divergences between high and low-skilled positions.

The cross-sectional nature of the data does not allow the authors to report causal relations.

The results suggest that depending on the work practices to be considered, as well as occupation, some ICTs are more suitable than others.

Two main features make this paper novel. First, previous studies on the link between ICT and HPWP made use of indexes, rendering the generation of assorted results impossible. Thus, the authors study how different ICT variables are related to different HPWPs at employee level. Second, the authors test whether employee occupation is a moderator in such relationships.