  The empirical analysis of discrete complete-information games has relied on
behavioral restrictions in the form of solution concepts, such as Nash
equilibrium. Choosing the right solution concept is crucial not just for
identification of payoff parameters, but also for the validity and
informativeness of counterfactual exercises and policy implications. We say
that a solution concept is discernible if it is possible to determine whether
it generated the observed data on the players' behavior and covariates. We
propose a set of conditions that make it possible to discern solution concepts.
In particular, our conditions are sufficient to tell whether the players'
choices emerged from Nash equilibria. We can also discern between
rationalizable behavior, maxmin behavior, and collusive behavior. Finally, we
identify the correlation structure of unobserved shocks in our model using a
novel approach.

Econometrics;Theoretical Economics