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Identification is closely related to the estimation of the model.
If an equation is identified, its coefficient can, in general, be statistically estimated. In particular:
(a) If the equation is exactly identified, the appropriate method to be used for its estimation is the method of indirect least squares.
(b) If the equation is over-identified, indirect least squares cannot be applied, because it will not yield unique estimates of the structural parameters. There are various other methods which can be used in this case, for example two-stage least squares (2SLS), or maximum likelihood methods.
The normal kind may be a matrix illustration of a simultaneous game. For 2 players, one is that the "row" player, and also the different, the "column" player. Every rows or column
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