Cost of reasoning and strategic sophistication

DOI10.3390/G11030040MaRDI QIDQ2221299zbMATH OpenOpenAlexFDO

Authors Wanqun Zhao

Publication date 26 January 2021

Published in Games (Search for Journal in Brave)

Copyright license Creative Commons Attribution 4.0 International

Full work available at URL https://doi.org/10.3390/g11030040

zbMATH Keywords

cognitive loadendogenous depth of reasoningguessing gamelevel-\(k\) reasoningstrategic thinking

Mathematics Subject Classification ID

2-person games (91A05) Rationality and learning in game theory (91A26) Experimental studies (91A90)

Review text

Summary: I designed an experiment to study the persistence of the prevailing levels of reasoning across games. Instead of directly comparing the \(k\)-level(s) of reasoning for each game, I used cognitive load to manipulate the strategic environment by imposing variations on the subject's cost of reasoning and their first- and second-order beliefs. Subjects have systematic changes in \(k\)-level(s) of reasoning across games. That finding suggests that subjects are responsive to changes in the strategic environment. Changes in \(k\)-level(s) of reasoning are mostly consistent with the endogenous depth of reasoning model when subjects are more cognitively capable or facing less cognitively capable opponents. Subjects have cognitive bounds, but often choose a lower-type action due to their beliefs about their opponents. Finally, cognitive ability plays a significant role in subjects making strategic adjustments when facing different strategic environments.

Recommendations

• Cognitive ability and strategic sophistication
• On the persistence of strategic sophistication
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Cites work

• A Cognitive Hierarchy Model of Games
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Cited in

(10)

• Reasoning about others' reasoning
• Editorial. New directions in behavioral game theory: introduction to the special issue
• Cognitive ability and strategic sophistication
• Cognitive ability and the effect of strategic uncertainty
• Game awareness: a questionnaire
• Human strategic reasoning in dynamic games: experiments, logics, cognitive models
• Equilibrium selection in coordination games: an experimental study of the role of higher order beliefs in strategic decisions
• Endogenous depth of reasoning
• Decision making costs and problem solving performance
• On the persistence of strategic sophistication

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