Beliefs and Endogenous Cognitive Levels: An Experimental Study

31 Pages Posted: 18 Apr 2012

See all articles by Marina Agranov

Marina Agranov

California Institute of Technology

Elizabeth Potamites

affiliation not provided to SSRN

Andrew Schotter

New York University (NYU) - Department of Economics

Chloe Tergiman

The Pennsylvania State University

Date Written: January 1, 2012

Abstract

In this paper we use a laboratory setting to manipulate our subjects’ beliefs about the cognitive levels of the players they are playing against. We show that in the context of the 2/3 guessing game, individual choices crucially depend on their beliefs about the level of others. Hence, a subject’s true cognitive level may be different than the one he exhibits in a game with the difference being attributed to his expectations about the sophistication of the players he is playing against.

Keywords: Guessing Game, Beliefs, Level-k theory

JEL Classification: C72, C92, D83

Suggested Citation

Agranov, Marina and Potamites, Elizabeth and Schotter, Andrew and Tergiman, Chloe, Beliefs and Endogenous Cognitive Levels: An Experimental Study (January 1, 2012). Games and Economic Behavior, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2041534

Marina Agranov (Contact Author)

California Institute of Technology ( email )

Pasadena, CA 91125
United States

HOME PAGE: http://www.hss.caltech.edu/~magranov/

Elizabeth Potamites

affiliation not provided to SSRN ( email )

Andrew Schotter

New York University (NYU) - Department of Economics ( email )

269 Mercer Street, 7th Floor
New York, NY 10011
United States
212-998-8909 (Phone)
212-995-4186 (Fax)

Chloe Tergiman

The Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

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