🎲 Structural Estimation of Games

Short course at Aalto University, September 2025

This course provides a graduate-level introduction to the structural estimation of static and dynamic games, with an emphasis on numerical optimization techniques. It covers the foundations of discrete choice models, dynamic programming, and various estimation methods, including Nested Fixed Point Algorithm (NFXP), Mathematical Programming with Equilibrium Constraints (MPEC), Nested Pseudo Likelihood (NPL), two-step estimators, and the Nested Recursive Lexicographical Search (NRLS) algorithm.

🧑‍🏫 Instructors

• Fedor Iskhakov

• Professor of Economics, Australian National University

• Email: fediskhakov@gmail.com

• Web: Personal page

• Alina Ozhegova

• Assistant Professor, Aalto University School of Business

• Email: alina.ozhegova@aalto.fi

• Web: Personal page

📆 Lecture schedule

Date	Topic	Comments
September 1	Algorithms and complexity
September 2	Static random utility models
September 4	Dynamic programming
September 8	Rust engine replacement model
September 9	CCP based estimation
September 11	Dynamic entry games
September 15	Multiplicity of equilibria in static games
September 16	Solving directional dynamic games with multiple equilibria
September 18	Estimation directional dynamic games with multiple equilibria

Download Syllabus

🏡 When and Where

• 3 weeks of lectures and tutorials

• Dates: September 1st - 19th; Monday, Tuesday, Thursday

• Time: 9.00-12.00

• Where: R001/M140 Majakka in Otakaari 1

🎓 Exam

• Individually or in a group of two

• Create and solve a problem using tools from the course

• Short model plan presentation during the last week (September 15th-18th)

• Final assessment will be based on video-presentation of the problem that needs to be submitted by October 3rd, 2025

👨‍🎓 Group photo