Question

7. Suppose you wanted to estimate valuation (V) using the method of moments on the
following data with the Nash-Bargaining protocol, such that EMY, G) = a + bY +cG

Y (Income)
9
9
10
10
11
11
12.
12
0
1
0
1
0

G(ender)
(Male = 1)
1
0
1
0
1
0
1
0


P (Price)
5
6
6
7
7.
8
8
9

Assume zero costs. What are the regression estimates â, b, and ĉ? What is E(V)? What is
E(
VY = 13, G = 0)? Explain your steps clearly.​

Answer 1

Answer:

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