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Learning strategic sophistication

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Author Info
Blume, Andreas
DeJong, Douglas V.
Maier, Michael (Tilburg University, Center for Economic Research)
Abstract

We experimentally investigate coordination games in which cognition plays an important role, i.e. where outcomes are affected by the agents level of understanding of the game and the beliefs they form about each others understanding. We ask whether and when repeated exposure permits agents to learn to improve cognition in a strategic setting. We find evidence for strategic sophistication being learned, generalized and promoted. Agents acquire strategic sophistication in simple settings. They may fail to do so in similar but more demanding settings. Given the opportunity, they transfer learning from the simple to the more demanding task. There is heterogeneity in sophistication. We find some evidence for sophisticated agents trying to spread sophistication early in the game, provided there is a long enough time horizon.

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 59.

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Date of creation: 2005
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Handle: RePEc:dgr:kubcen:200559

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Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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  1. Crawford, Vincent P & Haller, Hans, 1990. "Learning How to Cooperate: Optimal Play in Repeated Coordination Games," Econometrica, Econometric Society, vol. 58(3), pages 571-95, May. [Downloadable!] (restricted)
  2. Stahl Dale O. & Wilson Paul W., 1995. "On Players' Models of Other Players: Theory and Experimental Evidence," Games and Economic Behavior, Elsevier, vol. 10(1), pages 218-254, July. [Downloadable!] (restricted)
  3. Blume, Andreas & DeJong, Douglas V. & Kim, Yong-Gwan & Sprinkle, Geoffrey B., 2001. "Evolution of Communication with Partial Common Interest," Games and Economic Behavior, Elsevier, vol. 37(1), pages 79-120, October. [Downloadable!] (restricted)
  4. Nagel, Rosemarie, 1995. "Unraveling in Guessing Games: An Experimental Study," American Economic Review, American Economic Association, vol. 85(5), pages 1313-26, December. [Downloadable!] (restricted)
  5. Bhaskar, V., 2000. "Egalitarianism and Efficiency in Repeated Symmetric Games," Games and Economic Behavior, Elsevier, vol. 32(2), pages 247-262, August. [Downloadable!] (restricted)
  6. Blume, Andreas & Gneezy, Uri, 2000. "An Experimental Investigation of Optimal Learning in Coordination Games," Journal of Economic Theory, Elsevier, vol. 90(1), pages 161-172, January. [Downloadable!] (restricted)
  7. Camerer, Colin F. & Ho, Teck-Hua & Chong, Juin-Kuan, 2002. "Sophisticated Experience-Weighted Attraction Learning and Strategic Teaching in Repeated Games," Journal of Economic Theory, Elsevier, vol. 104(1), pages 137-188, May. [Downloadable!] (restricted)
  8. Blume, Andreas, 2000. "Coordination and Learning with a Partial Language," Journal of Economic Theory, Elsevier, vol. 95(1), pages 1-36, November. [Downloadable!] (restricted)
  9. Vincent P. Crawford, 2003. "Lying for Strategic Advantage: Rational and Boundedly Rational Misrepresentation of Intentions," American Economic Review, American Economic Association, vol. 93(1), pages 133-149, March. [Downloadable!] (restricted)
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  10. Steve Alpern & Diane Reyniers, 2002. "Spatial Dispersion as a Dynamic Coordination Problem," Theory and Decision, Springer, vol. 53(1), pages 29-59, August. [Downloadable!] (restricted)
  11. Eddie Dekel & Barton L. Lipman & Aldo Rustichini, 1998. "Standard State-Space Models Preclude Unawareness," Econometrica, Econometric Society, vol. 66(1), pages 159-174, January.
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