Cognitive Hierarchy Theory and Two-Person Games

Cognitive Hierarchy Theory and Two-Person Games

Carlos Gracia-Lázaro 1, Luis Mario Floría 1,2 and Yamir Moreno 1,3,* 1 Institute for Biocomputation and Physics of Complex Systems (BIFI), University of Zaragoza, 50018 Zaragoza, Spain; [email protected] (C.G.-L.); [email protected] (L.M.F.) 2 Departamento de Física de la Materia Condensada, University of Zaragoza, 50009 Zaragoza, Spain 3 Departamento de Física Teórica, Univer...

A Cognitive Hierarchy Theory of One-shot Games

Strategic thinking, best-response, and mutual consistency (equilibrium) are three key modeling principles in noncooperative game theory. This paper relaxes mutual consistency to predict how players are likely to behave in one-shot games before they can learn to equilibrate. We introduce a one-parameter cognitive hierarchy (CH) model to predict behavior in one-shot games, and initial conditions ...

A TRANSITION FROM TWO-PERSON ZERO-SUM GAMES TO COOPERATIVE GAMES WITH FUZZY PAYOFFS

In this paper, we deal with games with fuzzy payoffs. We proved that players who are playing a zero-sum game with fuzzy payoffs against Nature are able to increase their joint payoff, and hence their individual payoffs by cooperating. It is shown that, a cooperative game with the fuzzy characteristic function can be constructed via the optimal game values of the zero-sum games with fuzzy payoff...

Cognitive hierarchy and multi-stage I.O. games

The concept of cognitive hierarchy (Camerer et.al (2004)) is extended to multistage games. In a multi-stage game we will assume that the rationality level of a player indicates the number of stages of the game where he puts cognitive effort to calculate optimal actions. A player of rationality level k plays optimaly in the last k stages of the game and randomizes uniformly in the first m − k, w...

Zero-Sum Two Person Games