Graham, Bryan S.; Pelican, Andrin - 2023 - This Draft: July 2023
This paper introduces a simulation algorithm for evaluating the log-likelihood function of a large supermodular binary …-market entry games. More generally, the algorithm facilitates simulated maximum likelihood (SML) estimation of games with large … = O(10 4)). In such cases the likelihood of the observed pure strategy combination is typically (i) very small and (ii) a …