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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 |
A dynamic homotopy interpretation of the logistic quantal response equilibrium correspondence
- Citation:
- Turocy, T.L. (2005) A dynamic homotopy interpretation of the logistic quantal response equilibrium correspondence. Games and Economic Behavior 51(2): 243-263. DOI: 10.1016/j.geb.2004.04.003
- Abstract:
- This paper uses properties of the logistic quantal response equilibrium correspondence to compute Nash equilibria in finite games. It is shown that branches of the correspondence may be numerically traversed efficiently 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 that of Harsanyi and Selten's Tracing Proecdure. 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.
- Keywords:
- Noncooperative games; computation of Nash equilibrium; quantal response; logit equilibrium
- JEL classification:
- C72; C88
- Availability:
- http://dx.doi.org/10.1016/j.geb.2004.04.003