Heterogeneous Quantal Response Equilibrium
and Cognitive Hierarchies.
In the case of no straw poll, we are able to explain most of these discrepancies, using the logit version of quantal response equilibrium (QRE).
In Appendix B we fully characterize and compute the symmetric quantal response equilibrium correspondence for the three-person unanimous jury game with a straw vote.
(14) Baye and Morgan (1999) have also pointed out that prices above the Bertrand prediction can be explained by a (power function) quantal response equilibrium
The solution to this system of choice probability equations, the logit quantal response equilibrium (LQRE) (McKelvey and Palfrey 1995, 1996, 1998), identifies the equilibrium probabilities for every action at every information set in the game.
The games employed are games of perfect information, which resulted in a single subgame perfect equilibrium or logit quantal response equilibrium for any value of the utilities (but assuming no ties).
"On the Empirical Content of Quantal Response Equilibrium
." Cowles Foundation Discussion Paper No.