On the Empirical Content of Quantal Response Equilibrium

Philip A. Haile, Ali Hortaçsu and Grigory Kosenok

American Economic Review, 2008, vol. 98, issue 1, pages 180-200

Abstract: The quantal response equilibrium (QRE) notion of Richard D. McKelvey and Thomas R. Palfrey (1995) has recently attracted considerable attention, due in part to its widely documented ability to rationalize observed behavior in games played by experimental subjects. However, even with strong a priori restrictions on unobservables, QRE imposes no falsifiable restrictions: it can rationalize any distribution of behavior in any normal form game. After demonstrating this, we discuss several approaches to testing QRE under additional maintained assumptions. (JEL C72, D84)

Date: 2008
View citations in EconPapers

Downloads: (external link)
http://hdl.handle.net/10.1257/aer.98.1.180 (text/html)
http://www.aeaweb.org/articles/article_detail.php? ... issue_date=March2008 (application/pdf)
Access to full text is restricted to AEA members.

Related works:
Working Paper: On the Empirical Content of Quantal Response Equilibrium (2006)
Working Paper: On the Empirical Content of Quantal Response Equilibrium (2003)
Working Paper: On the Empirical Content of Quantal Response Equilibrium (0820)
Working Paper: On the Empirical Content of Quantal Response Equilibrium (2003)
Working Paper: On the Empirical Content of Quantal Response Equilibrium (2004)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:aea:aecrev:v:98:y:2008:i:1:p:180-200

Ordering information: This journal article can be ordered from
http://www.aeaweb.org/subscribe.html

Access Statistics for this article

American Economic Review is edited by Robert Moffitt

More articles in American Economic Review from American Economic Association
Contact information at EDIRC.
Series data maintained by Christopher F. Baum ().