• Corpus ID: 15847835

A Partial Identi cation Subnetwork Approach to Discrete Games in Large Networks : An Application to Quantifying Peer E ¤ ects

@inproceedings{Li2016API,
  title={A Partial Identi cation Subnetwork Approach to Discrete Games in Large Networks : An Application to Quantifying Peer E ¤ ects},
  author={Tong Li and Li Zhao and Peter Bearman and Kathleen Mullan Harris},
  year={2016}
}

• Tong Li, Li Zhao, +1 author K. Harris
• Published 2016
• Economics

This paper studies identi…cation and estimation of discrete games in large networks, with an application to peer e¤ects on smoking in friend networks. Due to the presence of multiple equilibria, the model is not point identi…ed. We adopt the partial identi…cation approach by constructing moment inequalities on choice probabilities of subnetworks. Doing so not only signi…cantly reduces the computational cost, but also enables us to …nd consistent estimator of the moment conditions even when the network is large and the friendship relationship structure varies signi…cantly among networks. Monte Carlo This research uses data from Add Health, a program project directed by Kathleen Mullan Harris and designed by J. Richard Udry, Peter S. Bearman, and Kathleen Mullan Harris at the University of North Carolina at Chapel Hill, and funded by grant P01-HD31921 from the Eunice Kennedy Shriver National Institute of Child Health and Human Development, with cooperative funding from 23 other federal agencies and foundations. Special acknowledgment is due Ronald R. Rindfuss and Barbara Entwisle for assistance in the original design. Information on how to obtain the Add Health data …les is available on the Add Health website (http://www.cpc.unc.edu/addhealth). No direct support was received from grant P01-HD31921 for this analysis. yDepartment of Economics, Vanderbilt University, [e-mail]. zAntai College of Economics and Management, Shanghai Jiao Tong University, [e-mail].