Point Estimation of Discrete Games

We propose a method for point estimation of discrete games similar to those considered by Bresnahan and Reiss (1991). In the model, the vNM utilities are a function of observed co-variates and random preference shocks. The model also explicitly parametrizes the probability of selecting a given equilibrium. We use recently developed computational methods to find all of the equilibrium (including mixed strategies) to the game. This allows us to simulate and estimate the model in a computationally tractable manner