Identification problem, Game Theory

Assignment Help:

Identification is a problem of model formultion, rather than inf nlnde! estimation or appraisal. We say a model is identified if it is in a unique statistical form, enabling unique estimates of its parameters to be suhsequerltly made from sample data. If a model is not identified then we cannot say exactly what relationship we are estimating.

To measure the coefficients of the demand ecjuattlon: cornlally the published time series reporting the quantity bough of the corrtmodir). is used. tiowever, the quantity bought is identical with the quantity sold at any particular price. Market data register points of interaction of equilibrium supply and demand at the price prevailing in the market at a certairz point of time. A sample of time-series observations shows simultaneously the quantity demanded, and the quantity supplied, at the prevailing market price. That is. it only shows the points of interactions of demand and supply. If' we use these data for estimation, we actually measure the coefficients of a function of the form Q = f (p) . This equation may be either the demand function or the supply function. But how can we be sure whether this equation represents demand function or supply function? If anyone is interested to measure the demand function then he can use the data. Similarly, the person who is interested to measure the supply equation will also be using the same data. It is clear that we need some criteria, which will enable us to verify that the estimated coefficients belong to the one or the other relationship.


Related Discussions:- Identification problem

Game 4 auctioning a penny jar (winner’s curse), GAME 4 Auctioning a Penny J...

GAME 4 Auctioning a Penny Jar (Winner’s Curse) Show a jar of pennies; pass it around so each student can have a closer look and form an estimate of the contents. Show the stud

What are the important forms of product differentiation, What are the impor...

What are the important forms of product differentiation? There are three significant forms of product differentiation, which are: 1. Differentiation through style or type –

Games with strategic moves, Games with Strat e gic M ov es   ...

Games with Strat e gic M ov es   The ideas in this chapters can be brought to life and the students can better appreciate the subtleties of various strategic moves an

Bidding ring, A set of colluding bidders. Ring participants agree to rig bi...

A set of colluding bidders. Ring participants agree to rig bids by agreeing not to bid against each other, either by avoiding the auction or by placing phony (phantom) bids.

Swertres computation, please compute this number 885 for the swertres lotto...

please compute this number 885 for the swertres lotto game.

Bidder''s choice, A multiunit auction mechanism for assigning heterogeneous...

A multiunit auction mechanism for assigning heterogeneous (different) objects. The highest bidder in the first round selects one item among those offered for sale. Then, a second r

Maximization problem, Two individuals (i ∈ {1, 2}) work independently on a ...

Two individuals (i ∈ {1, 2}) work independently on a joint project. They each independently decide how much e ort ei they put. E ort choice has to be any real number between 0 and

Perfect nash equilibrium, Perfect Nash equilibrium Two students prepar...

Perfect Nash equilibrium Two students prepare their homework assignment together for a course. They both enjoy getting high grade for their assignment, but they dislike workin

State the profit maximization problem of firm, 1. Consider two firms produc...

1. Consider two firms producing an identical product in a market where the demand is described by p = 1; 200 2Y. The corresponding cost functions are c 1 (y 1 ) = y 2 1 and c 2

Formulate the situation as strategic game - nash equilibrium, Two individua...

Two individuals use a common resource (a river or a forest, for example) to produce output. The more the resource is used, the less output any given individual can produce. Denote

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd