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Calculating upper and lower probability bounds on the outcomes of large entry games

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  • Cohen, Andrew
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    Abstract

    Recently developed econometric techniques for estimating the parameters of entry games with multiple equilibria suffer significant computational constraints associated with calculating upper and lower bound entry probabilities. We provide simulation-based and analytical expressions for these probabilities, reducing this computational burden.

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    Bibliographic Info

    Article provided by Elsevier in its journal Economics Letters.

    Volume (Year): 107 (2010)
    Issue (Month): 3 (June)
    Pages: 324-326

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    Handle: RePEc:eee:ecolet:v:107:y:2010:i:3:p:324-326

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    Web page: http://www.elsevier.com/locate/ecolet

    Related research

    Keywords: Entry games Multiple equilibria Nash equilibrium Modified minimum distance estimators;

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    1. Bresnahan, Timothy F. & Reiss, Peter C., 1991. "Empirical models of discrete games," Journal of Econometrics, Elsevier, Elsevier, vol. 48(1-2), pages 57-81.
    2. Elie Tamer, 2003. "Incomplete Simultaneous Discrete Response Model with Multiple Equilibria," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 70(1), pages 147-165, January.
    3. Ciliberto, Federico & Tamer, Elie, 2009. "Market structure and multiple equilibria in airline markets," MPRA Paper 38635, University Library of Munich, Germany.
    4. Davis, Peter, 2006. "Estimation of quantity games in the presence of indivisibilities and heterogeneous firms," Journal of Econometrics, Elsevier, Elsevier, vol. 134(1), pages 187-214, September.
    5. Berry, Steven T, 1992. "Estimation of a Model of Entry in the Airline Industry," Econometrica, Econometric Society, Econometric Society, vol. 60(4), pages 889-917, July.
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