Order statistic games by price takers

초록

This paper investigates the consequence of price-taking behavior in quantal response equilibrium model of order-statistic games. In contrast to the result of Yi (2003, Journal of Economic Behavior and Organization) that QRE selects the efficient equilibrium, if players ignore the influences of their own choices on the game outcome, or behave as price takers, the selection depends entirely on the prespecified order-statistic and the number of players, and an inefficient outcome could result.

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