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A Dynamic Homotopy Interpretation of Quantal Response Equilibrium Correspondences

Author

Listed:
  • Theodore L. Turocy

    (Texas A&M University)

Abstract

This 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.

Suggested Citation

  • Theodore L. Turocy, 2002. "A Dynamic Homotopy Interpretation of Quantal Response Equilibrium Correspondences," Game Theory and Information 0212001, University Library of Munich, Germany, revised 16 Oct 2003.
    • Handle: RePEc:wpa:wuwpga:0212001
    Note: Type of Document - PDF; prepared on Linux; pages: 26 ; figures: none
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/game/papers/0212/0212001.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    noncooperative games; computation of Nash equilibrium; quantal response; logit equilibrium.;
    All these keywords.

    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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