Tractable Identification of Strategic Network Formation Models with Unobserved Heterogeneity
含未观测异质性的策略性网络形成模型的可处理识别方法
We develop a tractable identification approach for strategic network formation models with both strategic link interdependence and individual unobserved heterogeneity (fixed effects). The key challenge is that endogenous network statistics (e.g. number of common friends) enter the link formation equation, while the mapping from model primitives to equilibrium network structure is generally intractable. Our approach sidesteps this difficulty using a ``bounding-by-$c$''…