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Quantal Response Equilibrium – A Stochastic Theory of Games - Princeton Scholarship Online
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Quantal Response Equilibrium: A Stochastic Theory of Games

Jacob K. Goeree, Charles A. Holt, and Thomas R. Palfrey

Abstract

This book presents a stochastic theory of games that unites probabilistic choice models developed in psychology and statistics with the Nash equilibrium approach of classical game theory. Nash equilibrium assumes precise and perfect decision making in games, but human behavior is inherently stochastic and people realize that the behavior of others is not perfectly predictable. In contrast, quantal response equilibrium models choice behavior as probabilistic and extends classical game theory into a more realistic and useful framework with broad applications for economics, political science, man ... More

Keywords: theory of games, probabilistic choice, Nash equilibrium, classical game theory, altruism, reciprocity, risk aversion, impatience

Bibliographic Information

Print publication date: 2016 Print ISBN-13: 9780691124230
Published to Princeton Scholarship Online: January 2018 DOI:10.23943/princeton/9780691124230.001.0001

Authors

Affiliations are at time of print publication.

Jacob K. Goeree, author
University of New South Wales

Charles A. Holt, author
University of Virginia

Thomas R. Palfrey, author
California Institute of Technology