Deep and shallow thinking in the long run
Speaker
Jonathan Newton
Date
29/06/2021 - 12:45 - 11:30Add To Calendar
2021-06-29 11:30:00
2021-06-29 12:45:00
Deep and shallow thinking in the long run
Humans differ in their strategic reasoning abilities and in beliefs about others’ strategic reasoning abilities. Studying such cognitive hierarchies has produced new insights regarding equilibrium analysis in economics. This paper investigates the effect of cognitive hierarchies on long run behavior. Despite short run behavior being highly sensitive to variation in strategic reasoning abilities, this variation is not replicated in the long run. In particular, when generalized risk dominant strategy profiles exist, they emerge in the long run independently of the strategic reasoning abilities of players. These abilities may be arbitrarily low or high, heterogeneous across players and evolve over time.
To view the seminar recording, click here.
Hybrid or Zoom
אוניברסיטת בר-אילן - המחלקה לכלכלה
Economics.Dept@mail.biu.ac.il
Asia/Jerusalem
public
Place
Hybrid or Zoom
Affiliation
University of Kyoto
Abstract
Humans differ in their strategic reasoning abilities and in beliefs about others’ strategic reasoning abilities. Studying such cognitive hierarchies has produced new insights regarding equilibrium analysis in economics. This paper investigates the effect of cognitive hierarchies on long run behavior. Despite short run behavior being highly sensitive to variation in strategic reasoning abilities, this variation is not replicated in the long run. In particular, when generalized risk dominant strategy profiles exist, they emerge in the long run independently of the strategic reasoning abilities of players. These abilities may be arbitrarily low or high, heterogeneous across players and evolve over time.
To view the seminar recording, click here.
Attached file
תאריך עדכון אחרון : 06/07/2021
