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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, individuals with better judgment choose zero less frequently, and we uncover …
Persistent link: https://www.econbiz.de/10014584425
Persistent link: https://www.econbiz.de/10015073365
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, individuals with better judgment choose zero less frequently, and we uncover …
Persistent link: https://www.econbiz.de/10015061969
Persistent link: https://www.econbiz.de/10012816366
We investigate how childhood cognitive skills affect strategic sophistication and adult outcomes. In particular, we emphasize the importance of childhood theory-of-mind as a cognitive skill. We collected experimental data from more than seven hundred children in a variety of strategic...
Persistent link: https://www.econbiz.de/10012322040
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The wage effect of job-education vertical mismatch (i.e. overeducation) has only recently been investigated in the case of Ph.D. holders. The existing contributions rely on OLS estimates that allow measuring the average effect of being mismatched at the mean of the conditional wages...
Persistent link: https://www.econbiz.de/10011798125
Response times are a simple low-cost indicator of the process of reasoning in strategic games. In this paper, we leverage the dynamic nature of response-time data from repeated strategic interactions to measure the strategic complexity of a situation by how long people think on average when they...
Persistent link: https://www.econbiz.de/10013191643