Quantal Response Equilibrium

A quantal response specifies choice probabilities that are smooth, increasing functions of expected payoffs. A quantal response equilibrium has the property that the choice distributions match the belief distributions used to calculate expected payoffs. This stochastic generalization of the Nash equilibrium provides strong empirical restrictions that are generally consistent with data from laboratory experiments with human subjects. We define the concept of regular quantal response equilibrium and discuss several applications from the recent literature.

[1]  J. Harsanyi.  Games with randomly disturbed payoffs: A new rationale for mixed-strategy equilibrium points , 1973 .

[2]  David K. Levine,et al.  The Paradox of Voter Participation? A Laboratory Study , 2007, American Political Science Review.

[3]  Jacob K. Goeree,et al.  An Explanation of Anomalous Behavior in Models of Political Participation , 2005, American Political Science Review.

[4]  Jacob K. Goeree,et al.  Risk averse behavior in generalized matching pennies games , 2003, Games Econ. Behav..

[5]  R. McKelvey,et al.  A STATISTICAL THEORY OF EQUILIBRIUM IN GAMES , 1996 .

[6]  On the Empirical Content of Quantal Response Models , 2004 .

[7]  Charles A. Holt,et al.  Anomalous Behavior in a Traveler's Dilemma? , 1999 .

[8]  T. Palfrey,et al.  Risk Averse Behavior in Asymmetric Matching Pennies Games , 2000 .

[9]  Charles A. Holt,et al.  Regular Quantal Response Equilibrium , 2005 .

[10]  Jacob K. Goeree,et al.  Quantal Response Equilibrium and Overbidding in Private-Value Auctions , 2002, J. Econ. Theory.

[11]  Philip A. Haile,et al.  On the Empirical Content of Quantal Response Equilibrium , 2003 .

[12]  Thomas R. Palfrey,et al.  An Experimental Study of Jury Decisions , 2000 .

[13]  Roberto A. Weber,et al.  The effects of payoff magnitude and heterogeneity on behavior in 2 x 2 games with unique mixed strategy equilibria , 2000 .

[14]  T. Cason,et al.  Uncertainty and Resistance to Reform in Laboratory Participation Games , 2005 .

[15]  D. McFadden.  Conditional logit analysis of qualitative choice behavior , 1972 .

[16]  Jacob K. Goeree,et al.  Quantal Response Equilibrium in Normal-Form Games , 2018 .

[17]  R. McKelvey,et al.  Quantal Response Equilibria for Extensive Form Games , 1998 .

[18]  R. McKelvey,et al.  Quantal Response Equilibria for Normal Form Games , 1995 .

[19]  Charles A. Holt,et al.  Ten Little Treasures of Game Theory and Ten Intuitive Contradictions , 2001 .

[20]  J. Ochs.  Games with Unique, Mixed Strategy Equilibria: An Experimental Study , 1995 .

[21]  Jacob K. Goeree,et al.  An experimental study of costly coordination , 2005, Games Econ. Behav..

[22]  Jacob K. Goeree,et al.  Minimum-Effort Coordination Games: Stochastic Potential and Logit Equilibrium , 2001, Games Econ. Behav..

[23]  Thomas R. Palfrey,et al.  Quantal Response Equilibrium in Extensive-Form Games , 2018 .