Partially Identified Rankings from Pairwise Interactions
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This paper considers the problem of ranking objects based on their latent merits using data from pairwise interactions. We allow for incomplete observation of these interactions and study what can be inferred about rankings in such settings. First, we show that identification of the ranking depends on a tradeoff between the tournament graph and the link function: in parametric models, such as the Bradley-Terry-Luce, rankings are point identified even with sparse graphs, whereas nonparametric link models require dense graphs. Second, moving beyond point identification, we characterize the identified set in the nonparametric link model under any tournament structure and represent it through moment inequalities. Finally, we propose a likelihood-based statistic to test whether a ranking belongs to the identified set. We study two testing procedures: one is finite sample valid but computationally intensive; the other is easy to implement and pointwise asymptotically valid. We illustrate our results using Brazilian employer-employee data and reject the hypothesis that the PageRank firm ordering constructed from job-to-job transitions belongs to the identified set.