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On the Persistence of Strategic Sophistication

Author

Listed:
  • Sotiris Georganas
  • Paul J. Healy
  • Roberto A. Weber

Abstract

We examine whether the ‘Level-k’ model of strategic behavior generates reliable cross-game predictions within an individual. We find no correlation in subjects’ estimated levels of reasoning across two families of games. Furthermore, estimating a higher level for Ann than Bob in one family of games does not predict their ranking in the other. Direct tests of strategic reasoning generally do not predict estimated levels. Within families of games, we find that levels are fairly consistent within one family, but not the other. Our results suggest that the use of Level-k reasoning varies by game, making prediction difficult.

Suggested Citation

  • Sotiris Georganas & Paul J. Healy & Roberto A. Weber, 2014. "On the Persistence of Strategic Sophistication," CESifo Working Paper Series 4653, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_4653
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    References listed on IDEAS

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    More about this item

    Keywords

    Level-k; cognitive hierarchy; behavioral game theory;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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