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Are individuals with higher cognitive ability expected to play more strategically?

Author

Listed:
  • Juan M. Benito-Ostolaza

    (Department of Economics, Universidad Pública de Navarra)

  • Penélope Hernández

    (Universitat de València and ERICES, Spain)

  • Juan A. Sanchis-Llopis

    (Universitat de València and ERICES, Spain)

Abstract

This paper experimentally analyzes the relationship between cognitive abilities and strategic behavior. In our experiment, individuals play in a sequential game where computing the equilibrium is challenging. After playing the game, we measure the individual's cognitive ability using the Raven's test. The results we obtain reveal that the number of strategic decisions (played in the sequential game) increases signi cantly among the individuals with higher cognitive ability (measured by the Raven's test), as compared to those with lower cognitive ability. These results con rm that individuals with higher cognitive abilities play more strategically.

Suggested Citation

  • Juan M. Benito-Ostolaza & Penélope Hernández & Juan A. Sanchis-Llopis, 2015. "Are individuals with higher cognitive ability expected to play more strategically?," Working Papers 1507, Department of Applied Economics II, Universidad de Valencia.
  • Handle: RePEc:eec:wpaper:1507
    as

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    File URL: ftp://147.156.210.157/RePEc/pdf/eec_1507.pdf
    File Function: First version, 2015
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    References listed on IDEAS

    as
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    Cited by:

    1. Duffy, Sean & Naddeo, JJ & Owens, David & Smith, John, 2016. "Cognitive load and mixed strategies: On brains and minimax," MPRA Paper 71878, University Library of Munich, Germany.

    More about this item

    Keywords

    Strategic Behavior; Cognitive abilities; Raven test; Experiments.;

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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