Noisy Directional Learning and the Logit Equilibrium
AbstractWe specify a dynamic model in which agents adjust their decisions toward higher payoffs, subject to normal error. This process generates a probability distribution of players' decisions that evolves over time according to the Fokker-Planck equation. The dynamic process is stable for all potential games, a class of payoff structures that includes several widely studied games. In equilibrium, the distributions that determine expected payoffs correspond to the distributions that arise from the logit function applied to those expected payoffs. This "logit equilibrium" forms a stochastic generalization of the Nash equilibrium and provides a possible explanation of anomalous laboratory data. Copyright The editors of the "Scandinavian Journal of Economics", 2004 .
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Wiley Blackwell in its journal The Scandinavian Journal of Economics.
Volume (Year): 106 (2004)
Issue (Month): 3 (October)
Contact details of provider:
Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442
You can help add them by filling out this form.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Article Summary: Noisy Directional Learning and the Logit Equilibrium
by John Barrdear in John Barrdear on 2009-08-24 13:38:19
- Friedman, Daniel & Ostrov, Daniel N., 2013. "Evolutionary dynamics over continuous action spaces for population games that arise from symmetric two-player games," Journal of Economic Theory, Elsevier, vol. 148(2), pages 743-777.
- Smith, Angela M., 2011. "An experimental study of exclusive contracts," International Journal of Industrial Organization, Elsevier, vol. 29(1), pages 4-13, January.
- Charles Figuières & David Masclet & Marc Willinger, 2013.
"Weak Moral Motivation Leads to the Decline of Voluntary Contributions,"
Journal of Public Economic Theory,
Association for Public Economic Theory, vol. 15(5), pages 745-772, October.
- Charles FIGUIERES & Marc WILLINGER & David MASCLET, 2009. "Weak moral motivation leads to the decline of voluntary contributions," Working Papers 09-09, LAMETA, Universtiy of Montpellier, revised Aug 2009.
- Charles Figuieres & David Masclet & Marc Willinger, 2011. "Weak moral motivation leads to the decline of voluntary contributions," CIRANO Working Papers 2011s-09, CIRANO.
- Suren Basov & Svetlana Danilkina & David Prentice, 2008.
"When does Variety increase with Quality?,"
2008.04, School of Economics, La Trobe University.
- Basov, Suren & Danilkina, Svetlana & Prentice, David, 2009. "When does variety increase with quality?," MPRA Paper 13445, University Library of Munich, Germany.
- Suren Basov & Svetlana Danilkina & David Prentice, 2008. "When does Variety increase with Quality?," Working Papers 2008.04, School of Economics, La Trobe University.
- Arifovic, Jasmina & Ledyard, John, 2012. "Individual evolutionary learning, other-regarding preferences, and the voluntary contributions mechanism," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 808-823.
- Rachel Hess & Charles Holt & Angela Smith, 2007. "Coordination of strategic responses to security threats: Laboratory evidence," Experimental Economics, Springer, vol. 10(3), pages 235-250, September.
- Friedman, Daniel & Ostrov, Daniel N., 2010. "Gradient dynamics in population games: Some basic results," Journal of Mathematical Economics, Elsevier, vol. 46(5), pages 691-707, September.
- Golman, Russell, 2012. "Homogeneity bias in models of discrete choice with bounded rationality," Journal of Economic Behavior & Organization, Elsevier, vol. 82(1), pages 1-11.
- Goeree, Jacob K. & Holt, Charles A., 2005.
"An experimental study of costly coordination,"
Games and Economic Behavior,
Elsevier, vol. 51(2), pages 349-364, May.
- Russell, Golman, 2011. "Quantal response equilibria with heterogeneous agents," Journal of Economic Theory, Elsevier, vol. 146(5), pages 2013-2028, September.
- Jasmina Arifovic & John Ledyard, 2012. "Individual Evolutionary Learning, Other-regarding Preferences, and the Voluntary Contributions Mechanism," Discussion Papers wp12-01, Department of Economics, Simon Fraser University.
- Wilfred Amaldoss & Teck-Hua Ho & Aradhna Krishna & Kay-Yut Chen & Preyas Desai & Ganesh Iyer & Sanjay Jain & Noah Lim & John Morgan & Ryan Oprea & Joydeep Srivasatava, 2008. "Experiments on strategic choices and markets," Marketing Letters, Springer, vol. 19(3), pages 417-429, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.