Sophisticated Players and Sophisticated Agents

Tilburg University, CentER Working Paper No. 1998-110

Posted: 31 Oct 1999

See all articles by Aldo Rustichini

Aldo Rustichini

University of Minnesota - Twin Cities - Department of Economics

Date Written: 1998

Abstract

A sophisticated player is an individual who takes the action of the opponents, in a strategic situation, as determined by decision of rational opponents, and acts accordingly. A sophisticated agent is rational in the choice of his action, but ignores the fact that he is part of a strategic situation. We discuss a notion of equilibrium with sophisticated agents, we provide conditions for its existence, and argue that it differs systematically from the Nash equilibrium.

JEL Classification: D81, D83

Suggested Citation

Rustichini, Aldo, Sophisticated Players and Sophisticated Agents (1998). Tilburg University, CentER Working Paper No. 1998-110. Available at SSRN: https://ssrn.com/abstract=165655

Aldo Rustichini (Contact Author)

University of Minnesota - Twin Cities - Department of Economics ( email )

271 19th Avenue South
Minneapolis, MN 55455
United States

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