Cognitive ability and the effect of strategic uncertainty

Nobuyuki Hanaki, Nicolas Jacquemet (), Stéphane Luchini () and Adam Zylbersztejn ()
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Stéphane Luchini: Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS

Theory and Decision, 2016, vol. 81, issue 1, No 7, 121 pages

Abstract: Abstract How is one’s cognitive ability related to the way one responds to strategic uncertainty? We address this question by conducting a set of experiments in simple $$2 \times 2$$ 2 × 2 dominance solvable coordination games. Our experiments involve two main treatments: one in which two human subjects interact, and another in which one human subject interacts with a computer program whose behavior is known. By making the behavior of the computer perfectly predictable, the latter treatment eliminates strategic uncertainty. We find that subjects with higher cognitive ability are more sensitive to strategic uncertainty than those with lower cognitive ability.

Keywords: Strategic uncertainty; Bounded rationality; Robot; Experiment (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (25)

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Related works:
Working Paper: Cognitive ability and the effect of strategic uncertainty (2016)
Working Paper: Cognitive ability and the effect of strategic uncertainty (2016)
Working Paper: Cognitive ability and the effect of strategic uncertainty (2016)
Working Paper: Cognitive ability and the effect of strategic uncertainty (2015)
Working Paper: Cognitive ability and the effect of strategic uncertainty (2015)
Working Paper: Cognitive Ability and the Effect of Strategic Uncertainty (2014)
Working Paper: Cognitive ability and the effect of strategic uncertainty (2014)
Working Paper: Cognitive ability and the effect of strategic uncertainty (2014)
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DOI: 10.1007/s11238-015-9525-9

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