[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/aea/aejmic/v16y2024i4p40-76.html
   My bibliography  Save this article

Consistent Depth of Reasoning in Level-k Models

Author

Listed:
  • David J. Cooper
  • Enrique Fatas
  • Antonio J. Morales
  • Shi Qi
Abstract
Level-k models often assume that individuals employ a fixed depth of reasoning across different games. We study this assumption by having subjects make choices in five classes of games chosen to identify inconsistent depth of reasoning. We demonstrate that depth of reasoning is pervasively inconsistent, changing both within and between classes of games. We show that this cannot easily be explained by factors such as subject confusion, changing beliefs about others' depth of reasoning, stochastic choice, model misspecification, changing incentives, or low cognitive ability. We develop a simple model incorporating ambiguity aversion that predicts inconsistent depth of reasoning.

Suggested Citation

  • David J. Cooper & Enrique Fatas & Antonio J. Morales & Shi Qi, 2024. "Consistent Depth of Reasoning in Level-k Models," American Economic Journal: Microeconomics, American Economic Association, vol. 16(4), pages 40-76, November.
    • Handle: RePEc:aea:aejmic:v:16:y:2024:i:4:p:40-76
    DOI: 10.1257/mic.20210237
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/mic.20210237
    Download Restriction: no
    File URL: https://doi.org/10.3886/E195045V1
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/mic.20210237.appx
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/mic.20210237.ds
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    File URL: https://libkey.io/10.1257/mic.20210237?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    JEL classification:

    • C57 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Econometrics of Games and Auctions
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aejmic:v:16:y:2024:i:4:p:40-76. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.