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Cognitive ability and the effect of strategic uncertainty

Nobuyuki Hanaki (), Nicolas Jacquemet (), Stéphane Luchini and Adam Zylbersztejn ()
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Stéphane Luchini: GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - ECM - Ecole Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université - EHESS - École des hautes études en sciences sociales

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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 x 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)
New Economics Papers: this item is included in nep-cse, nep-exp, nep-neu and nep-upt
Date: 2015
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01229612
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Related works:
Journal Article: Cognitive ability and the effect of strategic uncertainty (2016) Downloads
Working Paper: Cognitive ability and the effect of strategic uncertainty (2016) Downloads
Working Paper: Cognitive ability and the effect of strategic uncertainty (2015) Downloads
Working Paper: Cognitive Ability and the Effect of Strategic Uncertainty (2014) Downloads
Working Paper: Cognitive ability and the effect of strategic uncertainty (2014) Downloads
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