In the present work, I adopt the cognitive hierarchy approach to analyze the centipede game. To this end, I present and study an extensive-form version of Camerer et al.'s (2004) original normal-form model. The resulting predictions are evaluated empirically using laboratory data borrowed from a...

In the present work, I adopt the cognitive hierarchy approach to analyze the centipede game. To this end, I present and study an extensive-form version of Camerer et al.'s (2004) original normal-form model. The resulting predictions are evaluated empirically using laboratory data borrowed from a...

In an experimental setting, we applied a dual strategy to better understand the effect of pictures of eyes on human behavior. First, we investigated whether the effect of eyes was limited to interaction tasks in which the subjects' decisions influenced the outcomes of other subjects. We expanded...

In this work, I extend the normal form cognitive hierarchy model (Camerer et al. (2004)) to a class of finite two-person extensive form games. I study two versions of such a model: the first is as faithful as possible to the normal form assumptions, while the second modifies them slightly. In...

We examine differences in behavior between subjects interacting with a member of either the same or different identity group in both a centipede game and a series of stag hunt games. We find evidence that subjects interacting with outgroup members are more likely to behave as though...

We examine differences in behavior between subjects interacting with a member of either the same or different identity group in both a centipede game and a series of stag hunt games. We find evidence that subjects interacting with outgroup members are more likely to behave as though...

As one of the best-known examples of the paradox of backward induction, centipede games have prompted a host of studies with various approaches and explanations (McKelvey and Palfrey, 1992; Fey et al., 1996; Nagel and Tang, 1998; Rapoport et al., 2003; Palacios-Huerta and Volij, 2009). Focusing on initial plays...

This paper reports experimental tests of two alternative explanations of how players use focal points to select equilibria in one-shot coordination games. Cognitive hierarchy theory explains coordination as the result of common beliefs about players' pre-reflective inclinations towards the...

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...

Game theory is usually difficult to test precisely in the field because predictions typically depend sensitively on features that are not controlled or observed. We conduct one such test using field data from the Swedish lowest unique positive integer (LUPI) game. In the LUPI game, players pick...