This paper provides an econometric analysis on a duopoly game in the Japanese domestic airline market. We establish a novel Bayesian estimation approach for the entry game, which is free from the conventional identification problem and thus allows the incorporation of flexible inference...

This paper provides an econometric analysis on a duopoly game in the Japanese domestic airline market. We establish a novel Bayesian estimation approach for the entry game, which allows the incorporation of flexible inference techniques. We find asymmetric strategic interactions between Japanese...

This paper proposes a simple econometric framework that can identify moral hazard and selection problems separately in insurance markets. Although our methodology requires behavioral assumptions on the consumer's optimization, we show that these assumptions are necessary for the separate...

This paper proposes a simple microeconometric framework that can separately identify moral hazard and selection problems in insurance markets. Our econometric model is equivalent to the approach that is utilized for entry game analyses. We employ a Bayesian estimation approach that avoids a...

This paper proposes a Bayesian estimation of the payoff functions in entry games using Markov chain Monte Carlo simulation. In order to deal with the multiple Nash equilibria, we describe the econometric model with a latent variable that represents the player's choice of an equilibrium among the...