Hostname: page-component-cd9895bd7-8ctnn Total loading time: 0 Render date: 2024-12-26T07:28:26.606Z Has data issue: false hasContentIssue false

In Defense of Comparative Statics: Specifying Empirical Tests of Models of Strategic Interaction

Published online by Cambridge University Press:  04 January 2017

Clifford J. Carrubba
Affiliation:
Department of Political Science, Emory University, Atlanta, GA 30322. e-mail: ccarrub@emory.edu (corresponding author)
Amy Yuen
Affiliation:
Department of Political Science, Emory University, Atlanta, GA 30322. e-mail: ayuen@emory.edu
Christopher Zorn
Affiliation:
Department of Political Science, University of South Carolina, Columbia, SC 29208. e-mail: zorn@sc.edu

Abstract

Beginning in 1999, Curtis Signorino challenged the use of traditional logits and probits analysis for testing discrete-choice, strategic models. Signorino argues that the complex parametric relationships generated by even the simplest strategic models can lead to wildly inaccurate inferences if one applies these traditional approaches. In their stead, Signorino proposes generating stochastic formal models, from which one can directly derive a maximum likelihood estimator. We propose a simpler, alternative methodology for theoretically and empirically accounting for strategic behavior. In particular, we propose carefully and correctly deriving one's comparative statics from one's formal model, whether it is stochastic or deterministic does not particularly matter, and using standard logit or probit estimation techniques to test the predictions. We demonstrate that this approach performs almost identically to Signorino's more complex suggestion.

Type
Research Article
Copyright
Copyright © The Author 2007. Published by Oxford University Press on behalf of the Society for Political Methodology 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Achen, Christopher. 2006. Expressive Bayesian voters, their turnout decisions, and double probit: Empirical implications of a theoretical model. Paper presented at the annual meeting of the Society for Political Methodology, Davis, CA.Google Scholar
Bajari, Patrick, Hong, Han, Krainer, John, and Nekipelov, Denis. 2006. Estimating static models of strategic interaction. NBER Working Paper #12013. http://www.nber.org/papers/w12013 (accessed March 13, 2007).Google Scholar
Bas, Muhammat Ali, Signorino, Curtis S., and Walker, Robert W. 2006. Statistical backwards induction: A simple method for estimating strategic models. Working paper.Google Scholar
Brueckner, Jan. 2003. Strategic interactions among governments: An overview of empirical studies. International Regional Science Review 26(2): 175–88.Google Scholar
Caldeira, Gregory A., Wright, John R., and Zorn, Christopher. 1999. Strategic voting and gatekeeping in the U.S. Supreme Court. Journal of Law, Economics, & Organization 15(3): 549–72.Google Scholar
Carson, Jamie L. 2003. Strategic interaction and candidate competition in U.S. House elections: Empirical applications of probit and strategic probit models. Political Analysis 11: 368–80.CrossRefGoogle Scholar
Erdem, Tülin, Srinivasan, Kannan, Amaldoss, Wilfred, Bajari, Patrick, Che, Hai, Ho, Teck, Hutchinson, Wes et al. 2005. Theory-driven choice models. Marketing Letters 16 (3/4): 225–37.Google Scholar
Friedrich, Robert J. 1982. In defense of multiplicative terms in multiple regression equations. American Journal of Political Science 26 (November): 797833.Google Scholar
Haile, Phillip A., Hortaçsu, Ali, and Kosenok, Grigory. 2006. On the empirical content of quantal response equilibrium. Working paper.Google Scholar
Leblang, David A. 2003. To defend or to devalue: The political economy of exchange rate policy. International Studies Quarterly 47: 533–59.Google Scholar
Lewis, Jeffery B., and Schultz, Kenneth A. 2003. Revealing preferences: Empirical estimation of a crisis bargaining game with incomplete information. Political Analysis 11: 345–67.Google Scholar
McKelvey, Richard D., and Palfrey, Thomas R. 1998. Quantal response equilibria for extensive form games. Experimental Economics 1(1): 941.Google Scholar
Murphy, Kevin M., and Topel, Robert H. 1985. Estimation and inference in ‘two-step’ econometric models. Journal of Business and Economic Statistics 3 (October): 370–80.Google Scholar
Quinn, Kevin M., Martin, Andrew D., and Whitford, Andrew B. 1999. Voter choice in multi-party democracies: A test of competing theories and models. American Journal of Political Science 43: 1231–47.Google Scholar
Signorino, Curtis S. 1999. Strategic interaction and the statistical analysis of international conflict. American Political Science Review 93(2): 279–97.Google Scholar
Signorino, Curtis S. 2002. Strategy and selection in international relations. International Interactions 28: 93115.Google Scholar
Signorino, Curtis S. 2003. Structure and uncertainty in discrete choice models. Political Analysis 11: 316–44.Google Scholar
Signorino, Curtis S., and Yilmaz, Kuzey. 2003. Strategic misspecification in regression models. American Journal of Political Science 47(3): 551–66.Google Scholar
Smith, Alastair. 1999. Testing theories of strategic choice: The example of crisis escalation. American Journal of Political Science 42: 1254–83.Google Scholar