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.
Original language | English |
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Pages (from-to) | 28-31 |
Number of pages | 4 |
Journal | Economics Letters |
Volume | 106 |
Issue number | 1 |
Early online date | 29 Sep 2009 |
DOIs | |
Publication status | Published - Jan 2010 |
Keywords
- Dichotomous strategies
- Complementarity
- Incoherent models