IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Estimating a Bargaining Model with Asymmetric Information: Evidence from Medical Malpractice Disputes

Listed author(s):
  • Sieg, Holger
Registered author(s):

    Games with asymmetric information play a prominent role in the theoretical literature of malpractice disputes. The common modeling framework in many papers is a game in extensive form which consists of two stages. In the first stage, one agent makes a settlement demand, and the other agent accepts or rejects the demand. If the demand is accepted, the case is settled out of court. Otherwise the case is taken to court and decided by a jury. This article develops a strategy for estimating such a model and focuses on reconciling the theoretical literature with observed regularities in malpractice data. Estimation of these types of models is complicated by the fact that key variables are (partially) unobserved and must therefore be treated as latent variables. The estimation strategy requires a complete specification of the bargaining model, including distributional assumptions of the latent variables. The parameters of the model are estimated using a simulated method of moments (SMM) estimator. The results of this study suggest that a simple bargaining model with private information can explain many of the qualitative and quantitative regularities observed in the data.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Paper provided by Duke University, Department of Economics in its series Working Papers with number 99-02.

    in new window

    Date of creation: 1999
    Publication status: Published in JOURNAL OF POLITICAL ECONOMY, Vol. 108, 2000, pages 1006-1021
    Handle: RePEc:duk:dukeec:99-02
    Contact details of provider: Postal:
    Department of Economics Duke University 213 Social Sciences Building Box 90097 Durham, NC 27708-0097

    Phone: (919) 660-1800
    Fax: (919) 684-8974
    Web page:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:duk:dukeec:99-02. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Department of Economics Webmaster)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.