TY - BOOK AU - Goeree,Jacob K. AU - Holt,Charles A. AU - Palfrey,Thomas R. TI - Quantal Response Equilibrium: A Stochastic Theory of Games SN - 9780691124230 AV - QA269 .G64 2018 U1 - 519.3 23 PY - 2016///] CY - Princeton, NJ : PB - Princeton University Press, KW - Game theory KW - BUSINESS & ECONOMICS / Economics / Theory KW - bisacsh KW - AQRE KW - Markov QRE KW - Nash equilibrium KW - QRE reesarch KW - QRE KW - agent quantal response equilibrium KW - altruism KW - applications KW - auctions KW - bargaining KW - binary-choice games KW - choice distribution KW - classical game theory KW - dynamic quantal response equilibrium KW - dynamics KW - economics KW - estimation KW - extensive-form games KW - game theory KW - games KW - impatience KW - imperfectly rational behavior KW - inequity aversion KW - learning models KW - logit QRE KW - logit equilibrium KW - maximum-likelihood methods KW - methodology KW - minimum-effort coordination game KW - noisy behavior KW - noisy introspection KW - normal-form games KW - participation games KW - player skills KW - political science KW - price-competition game KW - probabilistic choice KW - pure game theory KW - quantal response equilibrium KW - reciprocity KW - reduced-form approach KW - rent dissipation KW - risk aversion KW - skill heterogeneity KW - social science KW - statistical game theory KW - symmetric game KW - theory of games KW - theory N1 - Frontmatter --; Contents --; Preface --; 1. Introduction and Background --; 2. Quantal Response Equilibrium in Normal-Form Games --; 3. Quantal Response Equilibrium in Extensive-Form Games --; 4. Heterogeneity --; 5. Dynamics and Learning --; 6. QRE as a Structural Model for Estimation --; 7. Applications to Game Theory --; 8. Applications to Political Science --; 9. Applications to Economics --; 10. Epilogue: Some Thoughts about Future Research --; References --; Index; restricted access; Issued also in print N2 - Quantal Response Equilibrium 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, QRE models choice behavior as probabilistic and extends classical game theory into a more realistic and useful framework with broad applications for economics, political science, management, and other social sciences.Quantal Response Equilibrium spans the range from basic theoretical foundations to examples of how the principles yield useful predictions and insights in strategic settings, including voting, bargaining, auctions, public goods provision, and more. The approach provides a natural framework for estimating the effects of behavioral factors like altruism, reciprocity, risk aversion, judgment fallacies, and impatience. New theoretical results push the frontiers of models that include heterogeneity, learning, and well-specified behavioral modifications of rational choice and rational expectations. The empirical relevance of the theory is enhanced by discussion of data from controlled laboratory experiments, along with a detailed users' guide for estimation techniques.Quantal Response Equilibrium makes pioneering game-theoretic methods and interdisciplinary applications available to a wide audience UR - https://doi.org/10.1515/9781400880928?locatt=mode:legacy UR - https://www.degruyter.com/isbn/9781400880928 UR - https://www.degruyter.com/cover/covers/9781400880928.jpg ER -