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Logical abilities and behavior in strategic-form games

Author

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  • Bayer, R.-C.
  • Renou, Ludovic
Abstract
This paper investigates the impact of cognitive abilities and preferences on behavior in games. We first measure subjects’ logical abilities and social preferences and then evaluate their influence on behavior in strategic-form games. For this purpose, we estimate how logical abilities and preferences relate to the probability of a subject being of a specific behavioral type. We find that better logical abilities increase the likelihood of sophisticated behavior. This shift is stronger for subjects who are classified as “selfish”. However, not even the most logically able, selfish subjects are identified as Nash types.

Suggested Citation

  • Bayer, R.-C. & Renou, Ludovic, 2016. "Logical abilities and behavior in strategic-form games," Journal of Economic Psychology, Elsevier, vol. 56(C), pages 39-59.
    • Handle: RePEc:eee:joepsy:v:56:y:2016:i:c:p:39-59
    DOI: 10.1016/j.joep.2016.05.005
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    More about this item

    Keywords

    Logical ability; Behaviors; Strategic-form games; Experiments; Preferences; Sophistication;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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