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Cognitive effort in the Beauty Contest Game

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  • Brañas-Garza, Pablo
  • García-Muñoz, Teresa
  • González, Roberto Hernán

Abstract

This paper analyzes cognitive effort in 6 different oneshot p-beauty games. We use both Raven and Cognitive Reflection tests to identify subjects’ abilities. We find that the Raven test does not provide any insight on Beauty Contest Game playing but CRT does: subjects with higher scores on this test are more prone to play dominant strategies. The results are confirmed when levels of reasoning instead of entries in the BCG are used.

Suggested Citation

  • Brañas-Garza, Pablo & García-Muñoz, Teresa & González, Roberto Hernán, 2012. "Cognitive effort in the Beauty Contest Game," Journal of Economic Behavior & Organization, Elsevier, vol. 83(2), pages 254-260.
    • Handle: RePEc:eee:jeborg:v:83:y:2012:i:2:p:254-260
    DOI: 10.1016/j.jebo.2012.05.018
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