IDEAS home Printed from https://ideas.repec.org/p/qsh/wpaper/8334.html

Depth of Reasoning and Higher Order Beliefs

Author

Listed:
  • Tomasz Strzalecki

Abstract

As demonstrated by the email game of Rubinstein (1989), the predictions of the standard equilibrium models of game theory are sensitive to assumptions about the fine details of the higher order beliefs. This paper shows that models of bounded depth of reasoning based on level-k thinking or cognitive hierarchy make predictions that are independent of the tail assumptions on the higher order beliefs. In addition to this finding, the tools developed in this paper o er a new direction for the analysis of models of bounded depth of reasoning and their applications to various economic settings. (JEL C72, D03)

Suggested Citation

  • Tomasz Strzalecki, "undated". "Depth of Reasoning and Higher Order Beliefs," Working Paper 8334, Harvard University OpenScholar.
    • Handle: RePEc:qsh:wpaper:8334
    as

    Download full text from publisher

    File URL: http://scholar.harvard.edu/tomasz/node/8334
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qsh:wpaper:8334. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Richard Brandon The email address of this maintainer does not seem to be valid anymore. Please ask Richard Brandon to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/cbrssus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.