The quantal response equilibrium (QRE) is an extension of the standard model of Nash equilibrium which allows for errors in choice. The QRE can be viewed as a generalization of statistical models of discrete choice behavior of individuals to a game theoretic setting. Just like in discrete choice...

Quantal Response Equilibrium presents a stochastic theory of games that unites probabilistic choice models developed in psychology and statistics with the Nash equilibrium approach of classical game theory. Nash equilibrium assumes precise and perfect decision making in games, but human behavior...