We thank a co-editor and three anonymous referees for their helpful suggestions. Steven Berry, Herman Bierens, Hanming Fang, Philip Haile, Isabelle Perrigne, Katja Seim, Elie Tamer, Petra Todd, Quang Vuong, Ken Wolpin, and seminar and conference participants at several institutions provided useful comments. We thank Hulya Eraslan for sharing her data with us and Chamna Yoon for providing excellent research assistance. The usual disclaimer applies.
Identification and Estimation of Stochastic Bargaining Models
Article first published online: 25 JUL 2012
© 2012 The Econometric Society
Volume 80, Issue 4, pages 1563–1604, July 2012
How to Cite
Merlo, A. and Tang, X. (2012), Identification and Estimation of Stochastic Bargaining Models. Econometrica, 80: 1563–1604. doi: 10.3982/ECTA9167
- Issue published online: 25 JUL 2012
- Article first published online: 25 JUL 2012
- Manuscript received March, 2010; final revision received October, 2011.
- Nonparametric identification and estimation;
- noncooperative bargaining;
- stochastic sequential bargaining;
- rationalizable counterfactual outcomes
Stochastic sequential bargaining models (Merlo and Wilson (1995, 1998)) have found wide applications in different fields including political economy and macroeconomics due to their flexibility in explaining delays in reaching an agreement. This paper presents new results in nonparametric identification and estimation of such models under different data scenarios.