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Evolution of Theories of Mind

  • Mohlin, Erik

    ()

    (Dept. of Economics, Stockholm School of Economics)

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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Paper provided by Stockholm School of Economics in its series SSE/EFI 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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The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden

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Web page: http://www.hhs.se/
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  1. Lahkar, Ratul & Sandholm, William H., 2008. "The projection dynamic and the geometry of population games," Games and Economic Behavior, Elsevier, vol. 64(2), pages 565-590, November.
  2. Eddie Dekel & Jeffrey C. Ely & Okan Yilankaya, 2007. "Evolution of Preferences -super-1," Review of Economic Studies, Oxford University Press, vol. 74(3), pages 685-704.
  3. Dale O. Stahl, 1997. "Rule Learning in Symmetric Normal-Form Games: Theory and Evidence," CARE Working Papers 9710, The University of Texas at Austin, Center for Applied Research in Economics.
  4. Fudenberg, Drew & Takahashi, Satoru, 2011. "Heterogeneous beliefs and local information in stochastic fictitious play," Games and Economic Behavior, Elsevier, vol. 71(1), pages 100-120, January.
  5. Jacob K. Goeree & Charles A. Holt, 2000. "A Model of Noisy Introspection," Virginia Economics Online Papers 343, University of Virginia, Department of Economics.
  6. Costa-Gomes, Miguel A. & Crawford, Vincent P., 2004. "Cognition and Behavior in Two-Person Guessing Games: An Experimental Study," University of California at San Diego, Economics Working Paper Series qt449812fx, Department of Economics, UC San Diego.
  7. Basu, Kaushik, 1994. "The Traveler's Dilemma: Paradoxes of Rationality in Game Theory," American Economic Review, American Economic Association, vol. 84(2), pages 391-95, May.
  8. Robson, Arthur J., 2003. "The evolution of rationality and the Red Queen," Journal of Economic Theory, Elsevier, vol. 111(1), pages 1-22, July.
  9. Steiner, Jakub & Stewart, Colin, 2008. "Contagion through learning," Theoretical Economics, Econometric Society, vol. 3(4), December.
  10. Sgroi, Daniel & Zizzo, Daniel John, 2009. "Learning to play 3×3 games: Neural networks as bounded-rational players," Journal of Economic Behavior & Organization, Elsevier, vol. 69(1), pages 27-38, January.
  11. Stahl II, D.O., 1991. "Evolution of Smart Players," Papers 9166, Tilburg - Center for Economic Research.
  12. Miguel Costa-Gomes & Vincent P. Crawford & Bruno Broseta, . "Cognition and Behavior in Normal-Form Games:An Experimental Study," Discussion Papers 00/45, Department of Economics, University of York.
  13. Stahl Dale O. & Wilson Paul W., 1995. "On Players' Models of Other Players: Theory and Experimental Evidence," Games and Economic Behavior, Elsevier, vol. 10(1), pages 218-254, July.
  14. Sandholm, William H., 2001. "Potential Games with Continuous Player Sets," Journal of Economic Theory, Elsevier, vol. 97(1), pages 81-108, March.
  15. Nagel, Rosemarie, 1995. "Unraveling in Guessing Games: An Experimental Study," American Economic Review, American Economic Association, vol. 85(5), pages 1313-26, December.
  16. Crawford, Vincent P., 2001. "Lying for Strategic Advantage: Rational and Boundedly Rational Misrepresentation of Intentions," University of California at San Diego, Economics Working Paper Series qt6k65014s, Department of Economics, UC San Diego.
  17. Johan Stennek, 2000. "The survival value of assuming others to be rational," International Journal of Game Theory, Springer, vol. 29(2), pages 147-163.
  18. Samuelson, Larry, 2001. "Analogies, Adaptation, and Anomalies," Journal of Economic Theory, Elsevier, vol. 97(2), pages 320-366, April.
  19. Mengel, Friederike, 2012. "Learning across games," Games and Economic Behavior, Elsevier, vol. 74(2), pages 601-619.
  20. Heller, Dana, 2004. "An evolutionary approach to learning in a changing environment," Journal of Economic Theory, Elsevier, vol. 114(1), pages 31-55, January.
  21. Dekel, Eddie & Ely, Jeffrey & Yilankaya, Okan, 2004. "Evolution of Preferences," Microeconomics.ca working papers dekel-04-08-13-01-21-07, Vancouver School of Economics, revised 09 Jun 2006.
  22. Ito, Takatoshi, 1979. "A Filippov solution of a system of differential equations with discontinuous right-hand sides," Economics Letters, Elsevier, vol. 4(4), pages 349-354.
  23. Drew Fudenberg & David K. Levine, 1996. "The Theory of Learning in Games," Levine's Working Paper Archive 624, David K. Levine.
  24. Monderer, Dov & Shapley, Lloyd S., 1996. "Potential Games," Games and Economic Behavior, Elsevier, vol. 14(1), pages 124-143, May.
  25. Samuelson, Larry, 2001. "Introduction to the Evolution of Preferences," Journal of Economic Theory, Elsevier, vol. 97(2), pages 225-230, April.
  26. Ellingsen, Tore & Östling, Robert, 2007. "When Does Communication Improve Coordination?," SSE/EFI Working Paper Series in Economics and Finance 680, Stockholm School of Economics, revised 19 Jun 2008.
  27. Dale O. Stahl, 1999. "Evidence based rules and learning in symmetric normal-form games," International Journal of Game Theory, Springer, vol. 28(1), pages 111-130.
  28. Josephson, Jens, 2001. "A Numerical Analysis of the Evolutionary Stability of Learning Rules," SSE/EFI Working Paper Series in Economics and Finance 474, Stockholm School of Economics.
  29. Vincent P. Crawford & Miguel A. Costa-Gomes & Nagore Iriberri, 2010. "Strategic Thinking," Levine's Working Paper Archive 661465000000001148, David K. Levine.
  30. Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
  31. Colin F. Camerer & Teck-Hua Ho & Juin-Kuan Chong, 2004. "A Cognitive Hierarchy Model of Games," The Quarterly Journal of Economics, Oxford University Press, vol. 119(3), pages 861-898.
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