We investigate the decisions of individuals in simple and complex environments. We use a version of the Guessing Game (Beauty-contest Game) as a vehicle for our investigation, employing mathematically talented students. We find that our subjects think in complex environments more carefully before making decisions. We rationalize our findings using the Cognitive Hierarchy (CH) model proposed by Camerer, Ho, and Chong (2002). We relate our results to the emerging literature on the decision making of collective actors.
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Article provided by Economics Bulletin in its journal Economics Bulletin.
Find related papers by JEL classification: C9 - Mathematical and Quantitative Methods - - Design of Experiments C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
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