For Dynamic Games
For dynamic (extensive form) games, McKelvey and Palfrey defined agent quantal response equilibrium (AQRE). AQRE is somewhat analogous to subgame perfection. In an AQRE, each player plays with some error as in QRE. At a given decision node, the player determines the expected payoff of each action by treating their future self as an independent player with a known probability distribution over actions.
As in QRE, in a AQRE every strategy is used with nonzero probability. This provides an additional advantage of AQRE over perfectly rational solution concepts. Since every path is followed with some probability, there is no concern about defining beliefs "off the equilibrium path".
Read more about this topic: Quantal Response Equilibrium
Famous quotes containing the words dynamic and/or games:
“Magic is the envelopment and coercion of the objective world by the ego; it is a dynamic subjectivism. Religion is the coercion of the ego by gods and spirits who are objectively conceived beings in control of nature and man.”
—Richard Chase (b. 1914)
“At the age of twelve I was finding the world too small: it appeared to me like a dull, trim back garden, in which only trivial games could be played.”
—Elizabeth Bowen (1899–1973)