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Sampling Logit Equilibrium and Endogenous Payoff Distortion

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  • Minoru Osawa

Abstract

We introduce the sampling logit equilibrium (SLE), a stationary concept for population games in which agents evaluate actions using a finite sample of opponents' plays and respond according to a logit choice rule. This framework combines informational frictions from finite sampling with stochastic choice. When the sample size is large, SLE is well approximated by a logit equilibrium of a virtual game whose payoffs incorporate explicit distortion terms generated by sampling noise. Examples illustrate how finite sampling can systematically shift equilibrium behavior and generate equilibrium selection effects.

Suggested Citation

  • Minoru Osawa, 2026. "Sampling Logit Equilibrium and Endogenous Payoff Distortion," Papers 2603.09539, arXiv.org.
    • Handle: RePEc:arx:papers:2603.09539
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    References listed on IDEAS

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