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Learning Strategic Sophistication

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Author Info

  • Blume, A.
  • DeJong, D.V.
  • Maier, M.

    (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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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2005-59.

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

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Web page: http://center.uvt.nl

Related research

Keywords: noncooperative games; laboratory group behavior;

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References

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  1. Crawford, Vincent P., 2001. "Lying for Strategic Advantage: Rational and Boundedly Rational Misrepresentation of Intentions," University of California at San Diego, Economics Working Paper Series qt6k65014s, Department of Economics, UC San Diego.
  2. Blume, A. & DeJong, D.V. & Kim, Y-G. & Sprinkle, G., 1997. "Evolution of Communication With Partial Common Interest," Discussion Paper 1997-115, Tilburg University, Center for Economic Research.
  3. Forsythe, Robert & Lundholm, Russell & Rietz, Thomas, 1999. "Cheap Talk, Fraud, and Adverse Selection in Financial Markets: Some Experimental Evidence," Review of Financial Studies, Society for Financial Studies, vol. 12(3), pages 481-518.
  4. 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.
  5. Eddie Dekel & Barton L. Lipman & Aldo Rustichini, 1998. "Standard State-Space Models Preclude Unawareness," Econometrica, Econometric Society, vol. 66(1), pages 159-174, January.
  6. Andreas Blume & Uri Gneezy, 1998. "An Experimental Investigation of Optimal Learning in Coordination Games," CIG Working Papers FS IV 98-12, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
  7. Blume, Andreas & Gneezy, Uri, 2010. "Cognitive forward induction and coordination without common knowledge: An experimental study," Games and Economic Behavior, Elsevier, vol. 68(2), pages 488-511, March.
  8. Blume, Andreas, 1998. "Coordination and Learning with a Partial Language," Working Papers 98-11, University of Iowa, Department of Economics.
  9. Steve Alpern & Diane Reyniers, 2002. "Spatial Dispersion as a Dynamic Coordination Problem," Theory and Decision, Springer, vol. 53(1), pages 29-59, August.
  10. 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.
  11. Nagel, Rosemarie, 1995. "Unraveling in Guessing Games: An Experimental Study," American Economic Review, American Economic Association, vol. 85(5), pages 1313-26, December.
  12. Bhaskar, V., 2000. "Egalitarianism and Efficiency in Repeated Symmetric Games," Games and Economic Behavior, Elsevier, vol. 32(2), pages 247-262, August.
  13. Broseta, Bruno & Costa-Gomes, Miguel & Crawford, Vincent P., 2000. "Cognition and Behavior in Normal-Form Games: An Experimental Study," University of California at San Diego, Economics Working Paper Series qt0fp8278k, Department of Economics, UC San Diego.
  14. 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.
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Cited by:
  1. Feinberg, Yossi, 2005. "Games with Incomplete Awareness," Research Papers 1894, Stanford University, Graduate School of Business.
  2. Blume, A. & DeJong, D.V. & Maier, M., 2005. "Cognition in Spatial Dispersion Games," Discussion Paper 2005-58, Tilburg University, Center for Economic Research.

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