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Do individuals with higher cognitive ability play more strategically?

Juan Benito (), Penélope Hernández and Sanchis-Llopis, Juan A.
Authors registered in the RePEc Author Service: Juan A. Sanchis Llopis ()

Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), 2016, vol. 64, issue C, 5-11

Abstract: This paper experimentally analyses the relationship between cognitive ability and strategic behaviour. In our experiment, individuals play in a sequential game, where computing the equilibrium is challenging. On completion of the game, we measure each player’s cognitive ability using Raven’s Progressive Matrices test. Our results reveal that the number of strategic decisions (played in the sequential game) increases significantly among those individuals with higher cognitive ability (measured by Raven’s test), compared to those with lower cognitive ability. These results clearly confirm that individuals with higher cognitive abilities play more strategically.

Keywords: Strategic behaviour; Cognitive abilities; Raven test; Experiments (search for similar items in EconPapers)
JEL-codes: A12 C72 C91 (search for similar items in EconPapers)
Date: 2016
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