Articles
Logit Solution and Equilibrium Selection in Two-Person Games
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AuthorKang-Oh Yi (Sogang University)
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Year2009
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VolumeVol.25
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NumberNo.2
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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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