Quantal Response Equilibrium with Non-Monotone Probabilities: A Dynamic Approach
AbstractAbstract In this paper I will give an example of a population game and of a locally improving stochastic learning process such that the quantal response equilibrium assigns to the different strategies the probabilities that are non-monotone in the payoffs. Moreover, if the initial state probabilities are payoff-monotone, then the learning can be shown the shrink mistakes in one direction and exacerbate them in the other direction.
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Bibliographic InfoPaper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 880.
Length: 13 pages
Date of creation: 2003
Date of revision:
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quantal response equilibrium; dynamic probabilistic choice models;
Find related papers by JEL classification:
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
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