Empirical Game Theoretic Models: Computational Issues

This paper discusses computational issues raised by ageneric solution and estimation methodology applicableto a broad range of empirical game theoretic modelswith incomplete information. By combining the use ofMonte Carlo simulation techniques with that of smoothkernel estimation of empirical distribution functions,the authors develop a numerical algorithm ofunparalleled performance and flexibility applicable,in particular, to models for which no operationalsolutions currently exist. An illustration to a set ofprocurement data from the French aerospace industry isused to illustrate the operation of this algorithm.