TESTING THE QUANTAL RESPONSE HYPOTHESIS

B-Tier
Journal: International Economic Review
Year: 2019
Volume: 60
Issue: 1
Pages: 53-74

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We develop a nonparametric test for consistency of player behavior with the quantal response equilibrium (QRE). The test exploits a characterization of the equilibrium choice probabilities in any structural QRE as the gradient of a convex function; thereby, QRE‐consistent choices satisfy the cyclic monotonicity inequalities. Our testing procedure utilizes recent econometric results for moment inequality models. We assess our test using lab experimental data from a series of generalized matching pennies games. We reject the QRE hypothesis in the pooled data but cannot reject individual‐level quantal response behavior for over half of the subjects.

Technical Details

RePEc Handle
repec:wly:iecrev:v:60:y:2019:i:1:p:53-74
Journal Field
General
Author Count
3
Added to Database
2026-01-29