We explore the influence of cognitive ability and judgment on strategic behavior in the beauty contest game (where the Nash equilibrium action is zero). Using the level-k model of bounded rationality, cognitive ability and judgment both predict higher level strategic thinking. However,...

Many papers have reported behavioral biases in belief formation that come on top of standard game-theoretic reasoning. We show that the processes involved depend on the way participants reason about their beliefs. When they think about what everybody else or another "unspeci fied" individual is...

Beliefs are intuitive if they rely on associative memory, which can be described as a network of associations between events. A belief-theoretic characterization of the model is provided, its uniqueness properties are established, and the intersection with the Bayesian model is characterized....

Die britischen Universitätsprofessoren aus dem Wirtschaftsbereich sind davon überzeugt, dass sich mit einfachen Regeln die meisten der komplexen Probleme effizient und erfolgreich lösen lassen. Ausführlich zeigt das Autorenduo dazu, wie die für eine Entscheidungsfindung wirklich wichtigen...