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Estimating Discrete Games of Complete Information: Bringing Logit Back in the Game

Paul S. Koh

arXiv 10 May 2022 · Econometrics

arXiv:2205.05002 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Estimating discrete games of complete information is often computationally difficult due to partial identification and the absence of closed-form moment characterizations. This paper proposes computationally tractable approaches to estimation and inference that remove the computational burden associated with equilibria enumeration, numerical simulation, and grid search. Separately for unordered and ordered-actions games, I construct an identified set characterized by a finite set of generalized likelihood-based conditional moment inequalities that are convex in (a subvector of) structural model parameters under the standard logit assumption on unobservables. I use simulation and empirical examples to show that the proposed approaches generate informative identified sets and can be several orders of magnitude faster than existing estimation methods.

Citation extraction

82
references
182
in-text mentions
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distinct cited
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self-citations
15,679
main-text words

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Galichon and Henry (2011) Set Identification in Models with Multiple Equilibria1.000133100%
2Aradillas-Lopez and Rosen (2022) Inference in ordered response games with complete information1.00083100%
3Jia (2008) What happens when Wal-Mart comes to town: An empirical analysis of the discount retailing industry1.00063100%
4Fan and Yang (2025) Estimating discrete games with many firms and many decisions: An application to merger and product variety0.97112592%
5Ciliberto and Tamer (2009) Market structure and multiple equilibria in airline markets0.9507386%
6Koh (2023) Stable outcomes and information in games: An empirical framework self0.94112683%
7Beresteanu, Molchanov and Molinari (2011) Sharp Identification Regions in Models With Convex Moment Predictions0.92843100%
8Ellickson and Misra (2011) Structural workshop paper—Estimating discrete games0.874122100%
9Canay, Illanes and Velez (2023) A User's Guide to Inference in Models Defined by Moment Inequalities0.87452100%
10Tamer (2003) Incomplete Simultaneous Discrete Response Model with Multiple Equilibria0.84333100%

Showing the top 10 of 82 scored citations.