Unlike the Nash equilibrium, logit quantal response equilibrium is affected by positive affine transformations of players' von Neumann-Morgenstern utility payoffs. This paper presents a modification of a logit quantal response equilibrium that makes this equilibrium solution concept invariant to...

The centipede game is a two-player finite game of perfect information where a unique subgame perfect Nash equilibrium appears to be intuitively unappealing and descriptively inadequate. This paper analyzes behavior in the centipede game when a traditional game-theoretical assumption that players...

In imperfectly discriminating contests, the contestants contribute effort to win a prize but the highest contributed effort does not necessarily secure a win. The contest success function (CSF) is the technology that translates an individual's effort into his or her probability of winning. This...

There are at least two reasons why multiple prizes can be optimal in symmetric imperfectly discriminating contests. First, the introduction of multiple prizes reduces the standard deviation of contestants' effort in asymmetric equilibria, when the majority of contestants actively participate in...