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Evolution of Theories of Mind

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  • Mohlin, Erik

    () (Dept. of Economics, Stockholm School of Economics)

Abstract

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.

Suggested Citation

  • Mohlin, Erik, 2010. "Evolution of Theories of Mind," SSE/EFI Working Paper Series in Economics and Finance 0728, Stockholm School of Economics, revised 20 Mar 2012.
  • Handle: RePEc:hhs:hastef:0728
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    References listed on IDEAS

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    Cited by:

    1. Heller, Yuval, 2015. "Three steps ahead," Theoretical Economics, Econometric Society, vol. 10(1), January.
    2. repec:eee:gamebe:v:106:y:2017:i:c:p:209-226 is not listed on IDEAS
    3. Erik O. Kimbrough & Nikolaus Robalino & Arthur J. Robson, 2013. "The Evolution of 'Theory of Mind': Theory and Experiments," Cowles Foundation Discussion Papers 1908, Cowles Foundation for Research in Economics, Yale University.
    4. Sandholm, William H., 2015. "Population Games and Deterministic Evolutionary Dynamics," Handbook of Game Theory with Economic Applications, Elsevier.
    5. Abhimanyu Khan & Ronald Peeters, 2014. "Cognitive hierarchies in adaptive play," International Journal of Game Theory, Springer;Game Theory Society, vol. 43(4), pages 903-924, November.
    6. Dimitry Rtischev, 2016. "Evolution of Mindsight and Psychological Commitment among Strategically Interacting Agents," Games, MDPI, Open Access Journal, vol. 7(3), pages 1-16, September.
    7. repec:bla:stratm:v:38:y:2017:i:12:p:2390-2423 is not listed on IDEAS

    More about this item

    Keywords

    Theory of Mind; Evolution; Learning; Level-k; Fictitious Play; Cognitive Hierarchy;

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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