Alaoui, Larbi; Penta, Antonio - Barcelona Graduate School of Economics (Barcelona GSE) - 2014
framework the player's `depth of reasoning' is endogenously determined, and it can be disentangled from his beliefs over his … opponent's cognitive bound. In our approach, individuals act as if they follow a cost-benefit analysis. The depth of reasoning … the individual's depth of reasoning and his beliefs about the reasoning process of the opponent. Thus, in our framework …