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Beliefs and endogenous cognitive levels: An experimental study

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Author Info

  • Agranov, Marina
  • Potamites, Elizabeth
  • Schotter, Andrew
  • Tergiman, Chloe
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    Abstract

    In this paper we use a laboratory setting to manipulate our subjectsʼ 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 subjectʼs 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.

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    File URL: http://www.sciencedirect.com/science/article/pii/S089982561200022X
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    Bibliographic Info

    Article provided by Elsevier in its journal Games and Economic Behavior.

    Volume (Year): 75 (2012)
    Issue (Month): 2 ()
    Pages: 449-463

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    Handle: RePEc:eee:gamebe:v:75:y:2012:i:2:p:449-463

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    Web page: http://www.elsevier.com/locate/inca/622836

    Related research

    Keywords: Guessing game; Beliefs; Level-k theory;

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