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Quantal Response Equilibrium

Goeree, Jacob K. and Holt, Charles A. and Palfrey, Thomas R. (2008) Quantal Response Equilibrium. In: The New Palgrave Dictionary of Economics. Palgrave MacMillan , New York, NY. ISBN 9780333786765. https://resolver.caltech.edu/CaltechAUTHORS:20160308-114418045

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Abstract

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.


Item Type:Book Section
Related URLs:
URLURL TypeDescription
http://www.dictionaryofeconomics.com/article?id=pde2008_Q000016&goto=Q&result_number=2981PublisherArticle
http://dx.doi.org/:10.1057/9780230226203.1372DOIArticle
ORCID:
AuthorORCID
Goeree, Jacob K.0000-0001-9876-3425
Palfrey, Thomas R.0000-0003-0769-8109
Additional Information:© Palgrave Macmillan 2008. We acknowledge financial support from the Alfred P. Sloan Foundation, the National Science Foundation (SBR 0094800 and 0551014; SES 0450712 and 0214013), and the Dutch National Science Foundation (VICI 453.03.606).
Funders:
Funding AgencyGrant Number
Alfred P. Sloan FoundationUNSPECIFIED
NSFSBR-0094800
NSFSBR-0551014
NSFSES-0450712
NSFSES-0214013
Nederlandse Organisatie voor Wetenschappelijk Onderzoek (NWO)VICI 453.03.606
Subject Keywords:coordination; extensive form games; fixed-point theorems; incomplete information; interchangeability; learning; Nash equilibrium; probabilistic choice models; quantal response equilibrium; sequential equilibria; Traveller's Dilemma
Record Number:CaltechAUTHORS:20160308-114418045
Persistent URL:https://resolver.caltech.edu/CaltechAUTHORS:20160308-114418045
Official Citation:Goeree, Jacob K., Charles A. Holt and Thomas R. Palfrey. "quantal response equilibria." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 15 March 2016 <http://www.dictionaryofeconomics.com/article?id=pde2008_Q000016> doi:10.1057/9780230226203.1372
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:65197
Collection:CaltechAUTHORS
Deposited By: Susan Vite
Deposited On:16 Mar 2016 00:05
Last Modified:22 Nov 2019 09:58

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