A Dynamic Homotopy Interpretation of Quantal Response Equilibrium Correspondences
AbstractThis paper uses properties of the logistic quantal response equilibrium correspondence to compute Nash equilibria in nite games. It is shown that branches of the correspondence may be numerically traversed e ciently and securely. The method can be implemented on a multicomputer, allowing for application to large games. The path followed by the method has an interpretation analogous to Harsanyi and Selten's Tracing Procedure. As an application, it is shown that the principal branch of any quantal response equilibrium correspondence satisfying a monotonicity property converges to the risk-dominant equilibrium in 2x2 games.
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Bibliographic InfoPaper provided by EconWPA in its series Game Theory and Information with number 0212001.
Length: 26 pages
Date of creation: 02 Dec 2002
Date of revision: 16 Oct 2003
Note: Type of Document - PDF; prepared on Linux; pages: 26 ; figures: none
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noncooperative games; computation of Nash equilibrium; quantal response; logit equilibrium.;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C88 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Other Computer Software
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