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Theodore L. Turocy,
Behavioural game theorist
Director, Centre for Behavioural and Experimental Social Science, University of East Anglia Senior Lecturer, School of Economics, University of East Anglia Director, The Gambit Project |
Computing sequential equilibria using agent quantal response equilibria
- Citation:
- Turocy, T.L. (2010) Computing sequential equilibria using agent quantal response equilibria. Economic Theory 42(1): 255-269. DOI: 10.1007/s00199-009-0443-3
- Abstract:
- The limit of any convergent sequence of agent quantal response equilibria is a sequential equilibrium of an extensive game. Using a logarithmic transformation of action probabilities, it is numerically feasible and practical to compute such sequences, and thereby compute good approximations to sequential equilibrium assessments. This paper describes the algorithm to compute the sequences, and outlines the convergence and selection properties of the method.
- Keywords:
- Computing Nash equilibrium; quantal response; homotopy methods.
- JEL classification:
- C63, C72.
- Availability:
- http://www.springerlink.com/content/fp14237720430057/