Article ID Journal Published Year Pages File Type
9551710 Games and Economic Behavior 2005 21 Pages PDF
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 2 × 2 games.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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