A Quantal Response Equilibrium Model of Order Statistic Games
This paper applies quantal response equilibrium (QRE) models (McKelvey and Palfrey, Games and Economic Behavior 10 (1995), 6-38) to a wide class of symmetric coordination games in which each player's best response is determined by an order statistic of all players' decisions, as in the classic experiments of Van Huyck, Battalio, and Beil (American Economic Review 80 (1990), 234-248; Quarterly Journal of Economics 106 (1991), 885-910), but players have a bounded continuum of decisions, which approximates to Van Huyck, Battalio, and Rankin's (1996) environment. Generalizing the results of Anderson, Goeree, and Holt (1998) with a quadratic payoff function, I show that as the noise vanishes the QRE approaches the most efficient equilibrium as a unique limit for all order statistics, including the minimum.
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Working Paper Series
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"Boundedly Rational Nash Equilibrium: A Probabilistic Choice Approach,"
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1996044, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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- Carlsson, Hans & van Damme, Eric, 1993.
"Global Games and Equilibrium Selection,"
Econometric Society, vol. 61(5), pages 989-1018, September.
- Carlsson, H. & van Damme, E.E.C., 1990. "Global games and equilibrium selection," Discussion Paper 1990-52, Tilburg University, Center for Economic Research.
- Hans Carlsson & Eric van Damme, 1993. "Global Games and Equilibrium Selection," Levine's Working Paper Archive 122247000000001088, David K. Levine.
- Carlsson, H. & van Damme, E.E.C., 1993. "Global games and equilibrium selection," Other publications TiSEM 49a54f00-dcec-4fc1-9488-4, Tilburg University, School of Economics and Management.
- Carlsson, H. & Van Damme, E., 1990. "Global Games And Equilibrium Selection," Papers 9052, Tilburg - Center for Economic Research.
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