Abstract
In this paper we use a laboratory setting to manipulate our subjects' beliefs about the cognitive levels of the players they are playing against. We show that in the context of the 2/3 guessing game, individual choices crucially depend on their beliefs about the level of others. Hence, a subject's true cognitive level may be different than the one he exhibits in a game with the difference being attributed to his expectations about the sophistication of the players he is playing against.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 449-463 |
| Number of pages | 15 |
| Journal | Games and Economic Behavior |
| Volume | 75 |
| Issue number | 2 |
| DOIs | |
| State | Published - Jul 1 2012 |
Keywords
- Beliefs
- Guessing game
- Level-k theory
ASJC Scopus subject areas
- Finance
- Economics and Econometrics
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Agranov, M., Potamites, E., Schotter, A., & Tergiman, C. (2012). Beliefs and endogenous cognitive levels: An experimental study. Games and Economic Behavior, 75(2), 449-463. https://doi.org/10.1016/j.geb.2012.02.002