Work

Statistical Backwards Induction: A Simple Method for Estimating Recursive Strategic Models

Year: 2007

Type: article

Abstract: We present a simple method for estimating regressions based on recursive 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. To illustrate the method, we replicate Leblang's (2003) study of speculative attacks by financial markets and government responses to these attacks.

Source: Political Analysis

DOI: 10.1093/pan/mpm029

Authors: Muhammet Ali Bas, Curtis S. Signorino, Robert W. Walker

Institutions: Harvard University, University of Rochester, Washington University in St. Louis

Language: English

Topic: Game Theory and Applications

Subfield: Management Science and Operations Research

Field: Decision Sciences

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2136802550

FWCI: 6.201

Cites: 24

Cited by: 79

Related to: 10