Evolution of Theories of Mind

Erik Mohlin ()

No 728, Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: This paper studies the evolution of peoples' models of how other people think -- their theories of mind. First, this is formalized within the level-k model, which postulates a hierarchy of types, such that type k plays a k times iterated best response to the uniform distribution. It is found that, under plausible conditions, lower types co-exist with higher types. The results are extended to a model of learning, in which type k plays a k times iterated best response the average of past play. The results are also extended to the cognitive hierarchy model, and to the introduction of a type that plays a Nash equilibrium.

Keywords: Theory of Mind; Evolution; Learning; Level-k; Fictitious Play; Cognitive Hierarchy (search for similar items in EconPapers)
JEL-codes: C73 D83 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe, nep-evo and nep-neu
Date: 2010-05-04, Revised 2012-03-20
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Journal Article: Evolution of theories of mind (2012)
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Persistent link: http://EconPapers.repec.org/RePEc:hhs:hastef:0728

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