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boundaries between psychology and economics. Noting that behavioral economics seems still under the spell of the rational choice … economics ; economic psychology …
Persistent link: https://www.econbiz.de/10003809939
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,...
Persistent link: https://www.econbiz.de/10014584425
We propose and experimentally test a theory of strategic behavior in which players are cognitively imprecise and perceive a fundamental parameter with noise. We focus on 2 x 2 coordination games, which generate multiple equilibria when perception is precise. When adding a small amount of...
Persistent link: https://www.econbiz.de/10012698826
Differences in cognitive sophistication and effort are at the root of behavioral heterogeneity in economics. To explain this heterogeneity, behavioral models assume that certain choices indicate higher cognitive effort. A fundamental problem with this approach is that observing a choice does not...
Persistent link: https://www.econbiz.de/10012006965
Level-k thinking and Cognitive Hierarchy have been widely applied as a normalform solution concept in behavioral and experimental game theory. We consider the extension of level-k thinking to extensive-form games. Player's may learn about levels of opponents' thinking during the play of the game...
Persistent link: https://www.econbiz.de/10013350881
Behavioral heterogeneity arising from cognitive differences among economic agents plays a fundamental role in the economy. To explain this heterogeneity, models of iterative thinking assume that certain choices indicate higher cognitive effort. That is, choices are used to infer the cognitive...
Persistent link: https://www.econbiz.de/10011880533
We propose and experimentally test a theory of strategic behavior in which players are cognitively imprecise and perceive a fundamental parameter with noise. We focus on 2 x 2 coordination games, which generate multiple equilibria when perception is precise. When adding a small amount of...
Persistent link: https://www.econbiz.de/10013310763
We propose and experimentally test a theory of strategic behavior in which players are cognitively imprecise and perceive a fundamental parameter with noise. We focus on 2 x 2 coordination games, which generate multiple equilibria when perception is precise. When adding a small amount of...
Persistent link: https://www.econbiz.de/10013314150
How do interacting decision-makers make strategic choices? If they're rational and can somehow predict each other's behavior, they may find themselves in a Nash equilibrium. However, humans display pervasive and systematic departures from rationality. They oft􀀵en do not conform to the...
Persistent link: https://www.econbiz.de/10012586913
The study analyzes data from world cup cross-country skiing sprint elimination tournaments for men and women in 2015-2020. In these tournaments prequalified athletes sequentially choose in which of five quarterfinal heats they want to compete. Due to a time constraint on the day the tournament...
Persistent link: https://www.econbiz.de/10013469608