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Uncertain rationality, depth of reasoning and robustness in games with incomplete information

Germano, Fabrizio; Weinstein, Jonathan; Zuazo-Garin, Peio - In: Theoretical economics : TE ; an open access journal in … 15 (2020) 1, pp. 89-122

unique rationalizable action. This paper studies how a wide class of departures from common belief in rationality impact … attach to (n- 1)th-order belief in rationality. We find that Weinstein and Yildiz's discontinuity remains when λn is above an … appropriate threshold for all n, but fails when λn converges to 0. That is, if players' confidence in mutual rationality persists …

Persistent link: https://www.econbiz.de/10012159030

Rational Inattention in Games : Experimental Evidence

Martin, Daniel - 2016

In this paper, I test the predictions of rational inattention theory using a laboratory experiment where one role in a two-player game faces cognitive costs to process information about a payoff-relevant state. I find that subjects who face these unobservable cognitive costs have state-dependent...

Persistent link: https://www.econbiz.de/10014132627

Robust scoring rules

Tsakas, Elias - In: Theoretical economics : TE ; an open access journal in … 15 (2020) 3, pp. 955-987

Is it possible to guarantee that the mere exposure of a subject to a belief elicitation task will not affect the very same beliefs that we are trying to elicit? In this paper, we introduce mechanisms that make it simultaneously strictly dominant for the subject (a) not to acquire any information...

Persistent link: https://www.econbiz.de/10012308719

Over-confidence and low-cost heuristics : an experimental investigation of choice behavior

Cicognani, Simona; Mittone, Luigi - 2014

This paper extends choice theory by allowing for the interaction between cognitive costs and imitative dynamics. The authors experimentally investigate the role of imitation when participants face a task which is costly in cognitive terms. In order to disentangle different choice dynamics, they...

Persistent link: https://www.econbiz.de/10010425055

Cognitive ability, character skills, and learning to play equilibrium : a level-k analysis

Gill, David; Prowse, Victoria L. - 2014

In this paper we investigate how cognitive ability and character skills influence behavior, success and the evolution of play towards Nash equilibrium in repeated strategic interactions. We study behavior in a p-beauty contest experiment and find striking differences according to cognitive...

Persistent link: https://www.econbiz.de/10010364492

From self-fulfilling mistakes to behavioral learning equilibria

Hommes, Cars H. - 2017

This essay links some of my own work on expectations, learning and bounded rationality to the inspiring ideas of Jean …

Persistent link: https://www.econbiz.de/10011590425

Communication-enhancing vagueness

Wood, Daniel H. - In: Games 13 (2022) 4, pp. 1-27

I experimentally investigate how vague language changes the nature of communication in a biased strategic information transmission game. Counterintuitively, when both precise and imprecise messages can be sent, in aggregate, senders are more accurate, and receivers trust them more than when only...

Persistent link: https://www.econbiz.de/10013367782

Procedural Rationality in Repeated Games

Sethi, Rajiv - 2020

This paper considers finitely repeated games played by procedurally rational players, who sample their available alternatives and use realized payoffs as a basis for strategy selection. The corresponding solution concept is that of (payoff) sampling equilibrium, which is a distribution over...

Persistent link: https://www.econbiz.de/10012847337

Discovery Process in Normal-Form Games with Unawareness : Cognitive Stability and Closedness under Rational Behavior

Tada, Yoshihiko - 2021

This study examines how each player chooses her/his optimal action in "normal-form games with unawareness" by applying a "discovery process" to them. We show that if each player implements a best response to the opponents' immediately preceding plays, then any discovery process converges to a...

Persistent link: https://www.econbiz.de/10013237214

How cognitive skills affect strategic behavior : cognitive ability, fluid intelligence and judgment

Gill, David; Knepper, Zachary; Prowse, Victoria; Zhou, Junya - 2024

Nash equilibrium action is zero). Using the level-k model of bounded rationality, cognitive ability and judgment both …

Persistent link: https://www.econbiz.de/10014584425