Abstract
This paper investigates the set of equilibria in models of social interaction and Quantal
Response Equilibrium (QRE). First, we discuss how models of social interaction can be
viewed as a special case of QRE. Subsequently, we establish criteria that characterize the set of equilibria in models of social interaction and QRE. Finally, we establish conditions for
convergence of sequential stochastic game models to QRE when players learn about the
aggregate behavior of the players.
JEL-Classification: C02; C25; C62; C72; C73
Keywords: Random utility models, Behavioral game theory, Social interaction, Quantal
Response Equilibrium