To err is human: Implementation in quantal response equilibria

Norovsambuu Tumennasan ()

Games and Economic Behavior, 2013, vol. 77, issue 1, 138-152

Abstract: We study the implementation problem when players are prone to make mistakes. To capture the idea of mistakes, Logit Quantal Response Equilibrium (LQRE) is used, and we consider a case in which players are almost rational, i.e., the sophistication level of players approaches infinity. We show that quasimonotonicity, a small variation of Maskin monotonicity, and no worst alternative are the necessary conditions for restricted Limit LQRE (LLQRE) implementation. Moreover, these conditions are sufficient for both restricted and unrestricted LLQRE implementations if there are at least three players and if at least one player has a state-independent worst alternative.

Keywords: Implementation; Mechanisms; Bounded rationality; Quantal response equilibria (search for similar items in EconPapers)
JEL-codes: C72 D70 D78 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Related works:
Working Paper: To Err is Human: Implementation in Quantal Response Equilibria (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:77:y:2013:i:1:p:138-152

DOI: 10.1016/j.geb.2012.10.004

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