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solution, and support a low-rationality, backward-looking approach to model behavior in the game, more consistent with … reinforcement learning models than with belief-based models. Showing level-2 rationality (i.e., reasoning about others' beliefs) is … process level to the validity of modeling behavior using low-rationality reinforcement learning models. …
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Human judgments are systematically affected by various biases and distortions. The main goal of our study is to analyze the effects of five well-documented behavioral biases—namely, the disposition effect, herd behavior, availability heuristic, gambler’s fallacy and hot hand fallacy—on the...
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