Estimating Discrete Games
Marketing Science, Vol. 30, No. 6, pp. 997-1010, 2011
33 Pages Posted: 21 Mar 2011 Last revised: 31 Jan 2012
Date Written: November 21, 2010
Abstract
This paper provides a critical review of the methods for estimating static discrete games and their relevance for quantitative marketing. We discuss the various modeling approaches, alternative assumptions, and relevant trade-offs involved in taking these empirical methods to data. We consider both games of complete and incomplete information, examine the primary methods for dealing with the coherency problems introduced by multiplicity of equilibria, and provide concrete examples from the literature. We illustrate the mechanics of estimation using a real world example and provide the computer code and dataset with which to replicate our results.
Keywords: discrete choice, game theory, strategic interaction
JEL Classification: M31, C14, C31, C35
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Estimating Dynamic Models of Imperfect Competition
By Patrick Bajari, C. Lanier Benkard, ...
-
Estimating Dynamic Models of Imperfect Competition
By Patrick Bajari, C. Lanier Benkard, ...
-
Sequential Estimation of Dynamic Discrete Games
By Victor Aguirregabiria and Pedro Mira
-
By Ariel Pakes and Paul Mcguire
-
Simple Estimators for the Parameters of Discrete Dynamic Games (with Entry/Exit Examples)
By Ariel Pakes, Michael Ostrovsky, ...
-
Simple Estimators for the Parameters of Discrete Dynamic Games (with Entry/Exit Samples)
By Ariel Pakes, Michael Ostrovsky, ...
-
A Dynamic Analysis of the Market for Wide-Bodied Commercial Aircraft
-
Multiple Equilibria and Deterrence in Airline Markets
By Federico Ciliberto and Zhou Zhang
-
Computable Markov-Perfect Industry Dynamics: Existence, Purification, and Multiplicity
-
Computable Markov-Perfect Industry Dynamics: Existence, Purification, and Multiplicity