LOGIT SOLUTION AND EQUILIBRIUM SELECTION IN TWO-PERSON GAMES

초록

This paper studies the properties of logit solution as a limit of logit equilibrium, where mistake probabilities depend in plausible ways on their expected costs. This dependence sometimes allows logit solution to select an equilibrium that differs from the risk-dominant equilibrium in 2 ×2 games. This paper also identifies a sufficient condition for logit solution to follow risk-dominance in 2 ×2 games.

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