Cognition and Behavior in Normal-Form Games: An Experimental Study

• Published in: Econometrica Vol. 69; no. 5; pp. 1193 - 1235
• Main Authors: Costa-Gomes, Miguel, Crawford, Vincent P., Broseta, Bruno
• Format: Journal Article
• Language: English
• Published: Oxford, UK and Boston, USA Blackwell Publishers Ltd 01.09.2001; Econometric Society; Blackwell; Blackwell Publishing Ltd
• Subjects: Altruism; Analytical estimating; Applied sciences; Bargaining; Cognition; Cognition & reasoning; Cognitive models; Decision making; Econometric models; Econometrics; Economics; Equilibrium; Error rates; Exact sciences and technology; Expected utility; experimental economics; Experiments; Game theory; Human behaviour; Information search; Laboratories; Management science; Model testing; Modeling; Nash equilibrium; Noncooperative games; Normal form games; Operational research and scientific management; Operational research. Management science; Operations research; Strategic planning; strategic sophistication; Studies; United States > US; Economics; Experimental economics; Compliance; Strategic sophistication; Normal form; Experimental game; Cognition; Experimental study; Equilibrium; Game theory; Decision; Non cooperative game; Econometrics; Pattern analysis

This paper reports experiments designed to study strategic sophistication, the extent to which behavior in games reflects attempts to predict others' decisions, taking their incentives into account. We study subjects' initial responses to normal-form games with various patterns of iterated...