The Logit Equilibrium a Perspective on Intuitive Behavioral Anomalies

@inproceedings{Anderson1999TheLE,
  title={The Logit Equilibrium a Perspective on Intuitive Behavioral Anomalies},
  author={Simon P. Anderson and Jacob K. Goeree and Charles A. Holt},
  year={1999}
}
This paper considers a class of models in which rank-based payoffs are sensitive to small amounts of noise in decision making. Examples include auction, price-competition, coordination, and location games. Observed laboratory behavior in these games is often responsive to asymmetric costs associated with deviations from the Nash equilibrium. These payoff asymmetry effects are incorporated in an approach that introduces noisy behavior via probabilistic choice. In equilibrium, behavior is… CONTINUE READING
Highly Cited
This paper has 46 citations. REVIEW CITATIONS

From This Paper

Figures, tables, and topics from this paper.

References

Publications referenced by this paper.
Showing 1-10 of 19 references

Altruism and Noisy Behavior in One-Shot Public Goods

Goeree, K Jacob, Charles A. Holt, Susan K. Laury
1999

Anomalous Behavior in a Traveler’s Dilemma?

Capra, C. Monica, Jacob K. Goeree, Rosario Gomez, Charles A. Holt
American Economic Review • 1999

Quantal Response Equilibria in Extensive Form Games

D Richard, Thomas R. Palfrey
1998

Quantal Response Equilibria in Extensive Form Games,"Experimental Economics

McKelvey, D. Richard, R. Thomas
Palfrey • 1998

Similar Papers

Loading similar papers…