We investigate the use of standard statistical models for quantal choice in a game theoretic
setting. Players choose strategies based on relative expected utility and assume other
players do so as well. We define a quantal response equilibrium (ORE) as a fixed point of
this process and establish existence. For a logit specification of the error structure, we show
that as the error goes to zero, QRE approaches a subset of Nash equilibria and also implies
a unique selection from the set of Nash equilibria in generic games. We fit the model to a …