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Logit response games with spatial structures are exactly solved. We exactly derive the probability that a player choose a strategy, the correlation function of strategies of distant players, and the expected utility
Persistent link: https://www.econbiz.de/10013130858
The logit function is frequently used in the probabilistic choice problem. The justification is usually provided in a manner that actual utility consists of observed utility and Gumbel random term; the probability then becomes logit. In this paper, we present an alternative explanation of the...
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