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st: question about reg3 / nlsur use

From   "Ed Levitas" <>
To   <>
Subject   st: question about reg3 / nlsur use
Date   Wed, 4 Jun 2008 11:53:33 -0500


We want to empirically model a binary decision made between two
negotiators (A & B).
The outcome, decision, is coded zero if the two reach an outcome, and
zero if they don't.  we have two sets of covariates, one for negotiator
A and one for negotiator B.  Theoretically, our model assumes the
following form.

Decision = f(covariate(1)(A), covariate(2)(A),,,covariate(n)(A))
Decision = f(covariate(1)(B), covariate(2)(B),,,covariate(n)(B))

where A indicates negotiator A 
      B indicates negotiator B.

Decision is arrived as from simultaneous inputs from A and B.  Can we
use REG3 provided by STATA to estimate this, or does the binary outcome
(ie Decision) preclude that.  If not REG3, would NLSUR provide a

Thanks in advance

Edward Levitas, PhD
Associate Professor
Sheldon B. Lubar School of Business 
University of Wisconsin-Milwaukee
3202 N. Maryland Ave.
Milwaukee, WI  53211
ph: (414) 229-6825
fx: (414) 229-6957

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