# Minimum-Effort Coordination Games: Stochastic Potential and Logit Equilibrium

@article{Anderson2001MinimumEffortCG, title={Minimum-Effort Coordination Games: Stochastic Potential and Logit Equilibrium}, author={Simon P. Anderson and Jacob K. Goeree and Charles A. Holt}, journal={Games Econ. Behav.}, year={2001}, volume={34}, pages={177-199} }

Abstract This paper revisits the minimum-effort coordination game with a continuum of Pareto-ranked Nash equilibria. Noise is introduced via a logit probabilistic choice function. The resulting logit equilibrium distribution of decisions is unique and maximizes a stochastic potential function. In the limit as the noise vanishes, the distribution converges to an outcome that is analogous to the risk-dominant outcome for 2 × 2 games. In accordance with experimental evidence, logit equilibrium…

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