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Quantal Response Equilibrium: A Stochastic Theory of Games

Jacob K. Goeree, Charles A. Holt, Thomas R. Palfrey




[PDF.nm98] Quantal Response Equilibrium: A Stochastic Theory of Games

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 | #371626 in Books |  Princeton Univ Pr |  2016-06-28 | Original language:English | PDF # 1 |  9.30 x1.10 x6.40l,.0 | File type: PDF | 328 pages

 | Princeton Univ Pr

|

Quantal Response Equilibrium presents a stochastic theory of games that unites probabilistic choice models developed in psychology and statistics with the Nash equilibrium approach of classical game theory. Nash equilibrium assumes precise and perfect decision making in games, but human behavior is inherently stochastic and people realize that the behavior of others is not perfectly predictable. In contrast, QRE models choice behavior as probabilistic and exten...

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