Testing for complementarity when strategies are dichotomous

Miravete, Eugenio J. and Pernías, José C. (2010) Testing for complementarity when strategies are dichotomous. Economics Letters, 106 (1). pp. 28-31. ISSN 0165-1765

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Abstract

We show that it is not possible to extend Arora (1996) reduced form test for the existence of complementarity to evaluate the relationship between a couple of dichotomous strategies as it leads to an incoherent simultaneous discrete response model.

Item Type:	Article
Uncontrolled Keywords:	dichotomous strategies,complementarity,incoherent models
Faculty \ School:	Faculty of Social Sciences > School of Economics
UEA Research Groups:	Faculty of Social Sciences > Research Groups > Industrial Economics Faculty of Social Sciences > Research Centres > Centre for Competition Policy
Depositing User:	Pure Connector
Date Deposited:	13 Jan 2017 00:06
Last Modified:	12 May 2023 00:28
URI:	https://ueaeprints.uea.ac.uk/id/eprint/62039
DOI:	10.1016/j.econlet.2009.09.016

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