Better Beliefs in Normal-Form Games

Deviations from equilibrium predictions in one-shot games are common in experiments, and various models have been proposed to capture the behavior of boundedlyrational players in games. While the Quantal Response Equilibrium model allows players to better respond to correct beliefs, in the model we introduce here, strategic players best-respond to better beliefs , i.e. beliefs that are not perfect. Unlike in level-k models, strategic players hold plausible beliefs that are (almost) correct on average