Likelihood and Estimation Sample Clauses

Likelihood and Estimation. Likelihood For each player i I observe his/her participation decisions in each period from the registration day till the end of the observation window. Since it is assumed that players’ transition between states follow a Markov process, the individual likelihood for any player is the sum of all possible routes (equation 22) (1, 2, … , ) = ∑ ∑ … ∑ [(1 = 1) ∗ ∏ ( = | ,−1 = −1) ∗ 1=1 2=1 =1 =2 ∏ =1 ( = | = )] (22) Although this equation is intuitive and straightforward, it is computationally intractable. Following MacDonald and Zucchini (1997), the individual likelihood can be rewritten into equation 23: = (1 = 1, … , = ) = πi′̃1 ∏ ̃ =2
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