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A window of cognition: Eyetracking the reasoning process in spatial beauty contest games

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  • Chen, Chun-Ting
  • Huang, Chen-Ying
  • Wang, Joseph Tao-yi

Abstract

We study the reasoning process in an environment where final choices are well understood and the associated theory is procedural by introducing two-person beauty contest games played spatially on two-dimensional grid maps. Players choose locations and are rewarded by hitting targets dependent on opponents' choice locations. By tracking subjects' eye movements (lookups), we infer their reasoning process and classify subjects into various levels. More than a half of the subjects' classifications coincides with their classifications using final choices, supporting a literal interpretation of the level-k model for subject's reasoning process. Lookup analyses reveal that the center area is where most subjects initially look at. This sheds light on the level-0 belief. Moreover, learning lookups of a trial on average could increase payoffs of that trial and eliminates roughly 60% of the gap to empirical best response, indicating how valuable lookups can help predict choices.

Suggested Citation

  • Chen, Chun-Ting & Huang, Chen-Ying & Wang, Joseph Tao-yi, 2018. "A window of cognition: Eyetracking the reasoning process in spatial beauty contest games," Games and Economic Behavior, Elsevier, vol. 111(C), pages 143-158.
    • Handle: RePEc:eee:gamebe:v:111:y:2018:i:c:p:143-158
    DOI: 10.1016/j.geb.2018.05.007
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    Cited by:

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    2. Polonio, Luca & Di Guida, Sibilla & Coricelli, Giorgio, 2015. "Strategic sophistication and attention in games: An eye-tracking study," Games and Economic Behavior, Elsevier, vol. 94(C), pages 80-96.
    3. Healy, Paul J. & Park, Hyoeun, 2023. "Model selection accuracy in behavioral game theory: A simulation," European Economic Review, Elsevier, vol. 152(C).
    4. Georganas, Sotiris & Healy, Paul J. & Weber, Roberto A., 2015. "On the persistence of strategic sophistication," Journal of Economic Theory, Elsevier, vol. 159(PA), pages 369-400.
    5. Marchiori, Davide & Di Guida, Sibilla & Polonio, Luca, 2021. "Plasticity of strategic sophistication in interactive decision-making," Journal of Economic Theory, Elsevier, vol. 196(C).
    6. Allred, Sarah & Duffy, Sean & Smith, John, 2016. "Cognitive load and strategic sophistication," Journal of Economic Behavior & Organization, Elsevier, vol. 125(C), pages 162-178.
    7. Duffy, Sean & Smith, John, 2014. "Cognitive load in the multi-player prisoner's dilemma game: Are there brains in games?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 51(C), pages 47-56.
    8. Duffy, Sean & Smith, John, 2011. "Cognitive load in the multi-player prisoner's dilemma game," MPRA Paper 30856, University Library of Munich, Germany.
    9. Vincent P. Crawford & Miguel A. Costa-Gomes & Nagore Iriberri, 2010. "Strategic Thinking," Levine's Working Paper Archive 661465000000001148, David K. Levine.
    10. Fiedler, Susann & Hillenbrand, Adrian, 2020. "Gain-loss framing in interdependent choice," Games and Economic Behavior, Elsevier, vol. 121(C), pages 232-251.
    11. Fischbacher, Urs & Hausfeld, Jan & Renerte, Baiba, 2022. "Strategic incentives undermine gaze as a signal of prosocial motives," Games and Economic Behavior, Elsevier, vol. 136(C), pages 63-91.
    12. Giovanna Devetag & Sibilla Guida & Luca Polonio, 2016. "An eye-tracking study of feature-based choice in one-shot games," Experimental Economics, Springer;Economic Science Association, vol. 19(1), pages 177-201, March.
    13. Brocas, Isabelle & Carrillo, Juan D., 2020. "The evolution of choice and learning in the two-person beauty contest game from kindergarten to adulthood," Games and Economic Behavior, Elsevier, vol. 120(C), pages 132-143.
    14. Müller, Julia & Schwieren, Christiane, 2011. "More than Meets the Eye: an Eye-tracking Experiment on the Beauty Contest Game," Working Papers 0516, University of Heidelberg, Department of Economics.
    15. Wei James Chen & Meng-Jhang Fong & Po-Hsuan Lin, 2023. "Measuring Higher-Order Rationality with Belief Control," Papers 2309.07427, arXiv.org.

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    More about this item

    Keywords

    Beauty contest game; Level-k model; Best response hierarchy; Guessing game; Cognitive hierarchy;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics

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