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

Write a bouncing ball video game, Write a bouncing ball video game. The gam...

Write a bouncing ball video game. The game is similar to the one described and depicted in The balls bounce within the screen where the two horizontal walls are fixed. The two v

Bid rigging, A practice analogous to price fixing in which auction members ...

A practice analogous to price fixing in which auction members form a ring whose associates agree not to bid against each other, either by discarding the auction or by placing phony

Edgeworth, Living from 1845 to 1926, Edgeworth's contributions to Economics...

Living from 1845 to 1926, Edgeworth's contributions to Economics still influence trendy game theorists. His Mathematical Psychics printed in 1881, demonstrated the notion of compet

Finding Equilibrium in Game Theory, This is Case of Competitive Games. ...

This is Case of Competitive Games. Player 2 L R Player 1 L (60,40) (70,30) R (65,35) (60,40) Are either have dominant st

Low rationality, One charm of evolutionary game theory is that it permits f...

One charm of evolutionary game theory is that it permits for relaxation of the normal fully-informed rational actor assumption. People, or agents, are assumed to be myopic, within

Simultaneous move games with mixed strategies, This chapter introduces mixe...

This chapter introduces mixed strategies and the methods used to solve for mixed strategy equilibria. Students are likely to accept the idea of randomization more readily if they t

Evolutionary games, How much time you want to spend on this material willde...

How much time you want to spend on this material willdepend on the focus of your course. For many social sciencecourses, a general exposure to the ideas, based on a quick runthroug

Compute pure strategy and mixed strategy equilibria of game, Ronaldo (Brazi...

Ronaldo (Brazil) kicks a penalty against Casillas (Spain) in the 2006 World Cup nal. Sup- pose that Ronaldo can kick the ball to Casillas' upper left (UL), lower left (LL), upper r

Game of chicken, Scenario Two hooligans with one thing to prove drive at...

Scenario Two hooligans with one thing to prove drive at one another on a slender road. the primary to swerve loses faces among his peers. If neither swerves, however, a terminal

Paired prisoners'' dilemma, Paired Prisoners' Dilemma Students can be p...

Paired Prisoners' Dilemma Students can be paired off and instructed to play several ver-sions of a particular game with a prisoners' dilemma structure.Provide each pair with a

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