The Nature of Salience Revisited: Cognitive Hierarchy Theory versus Team Reasoning
AbstractThis paper reports experimental tests of two alternative explanations of how players use focal points to select equilibria in one-shot coordination games. Cognitive hierarchy theory explains coordination as the result of common beliefs about players’ pre-reflective inclinations towards the relevant strategies; the theory of team reasoning explains it as the result of the players’ using a non-standard form of reasoning. We report two experiments; one finds support for the first theory, the other for the second. In the light of additional questionnaire evidence, we conclude that players’ reasoning is sensitive to the decision context.
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Bibliographic InfoPaper provided by The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham in its series Discussion Papers with number 2006-17.
Date of creation: Sep 2006
Date of revision:
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salience; focal point; cognitive hierarchy; team reasoning;
Other versions of this item:
- Nicolas Bardsley & Judith Mehta & Chris Starmer & Robert Sugden, 2006. "The Nature of Salience Revisited: Cognitive Hierarchy Theory versus Team Reasoning," Discussion Papers 2006-17, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-14 (All new papers)
- NEP-CBE-2007-01-14 (Cognitive & Behavioural Economics)
- NEP-EXP-2007-01-14 (Experimental Economics)
- NEP-GTH-2007-01-14 (Game Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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