Camerer, Colin F.; Ho, Teck-Hua; Chong, Juin-Kuan - In: The Quarterly Journal of Economics 119 (2004) 3, pp. 861-898
Players in a game are "in equilibrium" if they are rational, and accurately predict other players' strategies. In many experiments, however, players are not in equilibrium. An alternative is "cognitive hierarchy" (CH) theory, where each player assumes that his strategy is the most sophisticated....