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Higher cognitive ability is associated with lower entries in a p-beauty contest

  • Burnham, Terence C.
  • Cesarini, David
  • Johannesson, Magnus
  • Lichtenstein, Paul
  • Wallace, Björn

"Beauty contests" are well-studied, dominance-solvable games that generate two interesting results. First, most behavior does not conform to the unique Nash equilibrium. Second, there is considerable unexplained heterogeneity in behavior. In this work, we explore the relationship between beauty contest behavior and cognitive ability. We find that subjects with high cognitive ability exhibit behavior that is closer to the Nash equilibrium.

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Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 72 (2009)
Issue (Month): 1 (October)
Pages: 171-175

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Handle: RePEc:eee:jeborg:v:72:y:2009:i:1:p:171-175
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  1. Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2010. "Are Risk Aversion and Impatience Related to Cognitive Ability?," American Economic Review, American Economic Association, vol. 100(3), pages 1238-60, June.
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  7. David, Cesarini & Dawes, Christopher T. & Johannesson, Magnus & Lichtenstein, Paul & Wallace, Björn, 2007. "Genetic Variation in Preferences for Giving and Risk-Taking," SSE/EFI Working Paper Series in Economics and Finance 679, Stockholm School of Economics, revised 12 Jan 2009.
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