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Estimating a Mixed Strategy: United and American Airlines

  • Author(s): Golan, Amos
  • Karp, Larry S.
  • Perloff, Jeffrey M.
  • et al.
Abstract

We develop a generalized maximum entropy estimator that can estimate pure and mixed strategies subject to restrictions from game theory. This method avoids distributional assumptions and is consistent and efficient. We demonstrate this method by estimating the mixed strategies of duopolistic airlines.

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