EconPapers    
Economics at your fingertips  
 

Inclusive Cognitive Hierarchy in Collective Decisions

Yukio Koriyama () and Ali Ozkes

No 1819, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: We study the implications of structural models of non-equilibrium thinking, in which players best respond while holding heterogeneous beliefs on the cognitive levels of others. We introduce an inclusive cognitive hierarchy model, in which players are capable of projecting the self to others in regard to their cognitive level. The model is tested in a laboratory experiment of collective decision-making, which supports inclusiveness. Our theoretical results show that inclusiveness is a key factor for asymptotic properties of deviations from equilibrium behavior. Asymptotic behavior can be categorized into three distinct types: naïve, Savage rational with inconsistent beliefs, and sophisticated.

Keywords: collective decision-making; bounded rationality; cognitive hierarchy; information aggregation (search for similar items in EconPapers)
JEL-codes: C92 D72 D91 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2018-06
New Economics Papers: this item is included in nep-cbe, nep-cdm and nep-exp
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.amse-aixmarseille.fr/sites/default/fil ... /wp_2018_-_nr_19.pdf (application/pdf)

Related works:
Working Paper: Inclusive Cognitive Hierarchy (2020) Downloads
Working Paper: Inclusive Cognitive Hierarchy in Collective Decisions (2018) Downloads
Working Paper: Condorcet Jury Theorem and Cognitive Hierarchies: Theory and Experiments (2017) Downloads
Working Paper: Condorcet Jury Theorem and Cognitive Hierarchies: Theory and Experiments (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:1819

Access Statistics for this paper

More papers in AMSE Working Papers from Aix-Marseille School of Economics, France AMU-AMSE - 5-9 Boulevard Maurice Bourdet, CS 50498 - 13205 Marseille Cedex 1. Contact information at EDIRC.
Bibliographic data for series maintained by Gregory Cornu ().

 
Page updated 2024-07-21
Handle: RePEc:aim:wpaimx:1819