title:         Statistical Backwards Induction: A Simple Method for Estimating Statistical Strategic Models
authors:       Muhammet Bas, Curtis Signorino, Robert Walker
entrydate:     2006-09-22 21:40:49
keywords:      discrete choice, strategic, QRE, logit, probit, statistical backwards induction, limited information estimation
abstract:      We present a simple method for estimating regressions based on extensive-form games. Our procedure, which can be implemented in most standard statistical packages, involves sequentially estimating standard logits (or probits) in a manner analogous to backwards induction. We demonstrate that the technique produces consistent parameter estimates and show how to calculate consistent standard errors using model-dependent analytical and general simulation techniques. To illustrate the method, we replicate Leblang’s (2003) study of speculative attacks by financial markets and government responses to these attacks.

http://polmeth.wustl.edu/retrieve.php?id=643

**********************************************************
             Political Methodology E-Mail List
        Editor: Karen Long Jusko <[log in to unmask]>
**********************************************************
        Send messages to [log in to unmask]
  To join the list, cancel your subscription, or modify
           your subscription settings visit:

          http://polmeth.wustl.edu/polmeth.php

**********************************************************