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Estimating a Mixed Strategy: United and American Airlines

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Author Info
Amos Golan (American University)
Larry Karp (University of California, Berkeley)
Jeffrey Perloff (University of California, Berkeley)

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Abstract

We develop a generalized maximum entropy estimator that can estimate pure and mixed strategies subject to restrictions from game theory. This method avoids distributional assumptions and is consistent and efficient. We demonstrate this method by estimating the mixed strategies of duopolistic airlines.

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File URL: http://repositories.cdlib.org/cgi/viewcontent.cgi?article=1018&context=iir
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Publisher Info
Paper provided by Institute of Industrial Relations, UC Berkeley in its series Institute for Research on Labor and Employment, Working Paper Series with number 1018.

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Date of creation: 01 Jun 1998
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Handle: RePEc:cdl:indrel:1018

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Related research
Keywords: C13; C35; C72; L13; L93;

References listed on IDEAS
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  1. James A. Brander & Anming Zhang, 1990. "Market Conduct in the Airline Industry: An Empirical Investigation," RAND Journal of Economics, The RAND Corporation, vol. 21(4), pages 567-583, Winter. [Downloadable!] (restricted)
  2. Kooreman, Peter, 1994. "Estimation of Econometric Models of Some Discrete Games," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 9(3), pages 255-68, July-Sept. [Downloadable!] (restricted)
  3. Bresnahan, Timothy F. & Reiss, Peter C., 1991. "Empirical models of discrete games," Journal of Econometrics, Elsevier, vol. 48(1-2), pages 57-81. [Downloadable!] (restricted)
  4. Amos Golan & Larry Karp & Jeffrey Perloff, 1999. "Estimating Coke and Pepsi's price and advertising strategies," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series 789, Department of Agricultural & Resource Economics, UC Berkeley. [Downloadable!]
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