Testing for complementarity when strategies are dichotomous

Eugenio J. Miravete, José C. Pernías

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13 Citations (Scopus)


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 languageEnglish
Pages (from-to)28-31
Number of pages4
JournalEconomics Letters
Issue number1
Early online date29 Sep 2009
Publication statusPublished - Jan 2010


  • Dichotomous strategies
  • Complementarity
  • Incoherent models

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