Sophisticated Players and Sophisticated Agents
Tilburg University, CentER Working Paper No. 1998-110
Posted: 31 Oct 1999
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: 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
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