Testable Restrictions of Nash Equilibrium in Games with Continuous Domains

Number: 
229
Published: 
Classification JEL: 
C71, C72, C92, D70
Keywords: 
Human capital agglomeration, Social returns, Private returns, Externalities, Uncertainty, Fiscal policy

This paper studies the falsifiability of the hypothesis of Nash behavior, for the case of a finite number of players who choose from continuous domains, subject to constraints. The results obtained here are negative. Assuming the observation of finite dat