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Evolution of Theories of Mind

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  • Mohlin, Erik

    ()
    (Dept. of Economics, Stockholm School of Economics)

Abstract

This paper studies the evolution of peoples' models of how other people think -- their theories of mind. First, this is formalized within the level-k model, which postulates a hierarchy of types, such that type k plays a k times iterated best response to the uniform distribution. It is found that, under plausible conditions, lower types co-exist with higher types. The results are extended to a model of learning, in which type k plays a k times iterated best response the average of past play. The results are also extended to the cognitive hierarchy model, and to the introduction of a type that plays a Nash equilibrium.

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File URL: http://swopec.hhs.se/hastef/papers/hastef0728.pdf
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Bibliographic Info

Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 0728.

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Length: 53 pages
Date of creation: 04 May 2010
Date of revision: 12 May 2010
Handle: RePEc:hhs:hastef:0728

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Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
Phone: +46-(0)8-736 90 00
Fax: +46-(0)8-31 01 57
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Web page: http://www.hhs.se/
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Related research

Keywords: Theory of Mind; Evolution; Learning; Level-k; Fictitious Play; Cognitive Hierarchy;

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References

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Citations

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Cited by:
  1. Heller, Yuval, 2012. "Three steps ahead," MPRA Paper 40714, University Library of Munich, Germany.
  2. Erik O. Kimbrough & Nikolaus Robalino & Arthur J. Robson, 2013. "The Evolution of 'Theory of Mind': Theory and Experiments," Levine's Working Paper Archive 786969000000000735, David K. Levine.

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