Articles

Articles

Logit Solution and Equilibrium Selection in Two-Person Games
  • Author
    Kang-Oh Yi (Sogang University)
  • Year
    2009
  • Volume
    Vol.25
  • Number
    No.2
  • 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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