McKelvey, Richard D. and Palfrey, Thomas R. and Weber, Roberto A. (1999) The Effects of Payoff Magnitude and Heterogeneity on Behavior in 2 x 2 Games with Unique Mixed Strategy Equilibria. Social Science Working Paper, 991. California Institute of Technology , Pasadena, CA. (Unpublished) https://resolver.caltech.edu/CaltechAUTHORS:20170815-143845609
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Abstract
The Logit version of Quantal Response Equilibrium predicts that equilibrium behavior in games will vary systematically with payoff magnitudes, if all other factors are held constant (including the Nash equilibria of the game). We explore this in the context of a set of asymmetric 2x2 games with unique totally mixed strategy equilibria. The data provide little support for the payoff magnitude predictions of the Logit Equilibrium model. We extend the theoretical Quantal Response Equilibrium model to allow for heterogeneity, and find that the data fit the heterogeneous version of the theory significantly better.
Item Type: | Report or Paper (Working Paper) | ||||||
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Alternate Title: | The Effects of Payoff Magnitude and Heterogeneity on Behavior in 2x2 Games with Unique Mixed Strategy Equilibria | ||||||
Additional Information: | Published as McKelvey, Richard D. and Weber, Roberto A. and Palfrey, Thomas R. (2000) The Effects of Payoff Magnitude and Heterogeneity on Behavior in 2x2 Games with Unique Mixed Strategy Equilibria. Journal of Economic Behavior and Organization, 42 (4). pp. 523-548. | ||||||
Group: | Social Science Working Papers | ||||||
Subject Keywords: | Experiments, Game theory, Equilibrium, Mixed strategies | ||||||
Series Name: | Social Science Working Paper | ||||||
Issue or Number: | 991 | ||||||
Classification Code: | JEL: C72 ,C91 ,C92 | ||||||
Record Number: | CaltechAUTHORS:20170815-143845609 | ||||||
Persistent URL: | https://resolver.caltech.edu/CaltechAUTHORS:20170815-143845609 | ||||||
Usage Policy: | No commercial reproduction, distribution, display or performance rights in this work are provided. | ||||||
ID Code: | 80428 | ||||||
Collection: | CaltechAUTHORS | ||||||
Deposited By: | Jacquelyn Bussone | ||||||
Deposited On: | 15 Aug 2017 22:08 | ||||||
Last Modified: | 22 Nov 2019 09:58 |
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