Focal points revisited: Team reasoning, the principle of insufficient reason and cognitive hierarchy theory

Explaining Focal Points: Cognitive Hierarchy Theory versus Team Reasoning

This paper reports experimental tests of two alternative explanations of how players use focal points to select equilibria in one-shot coordination games. Cognitive hierarchy theory explains coordination as the result of common beliefs about players’ pre-reflective inclinations towards the relevant strategies; the theory of team reasoning explains it as the result of the players’ using a non-st...

The Nature of Salience Revisited: Cognitive Hierarchy Theory versus Team Reasoning

This paper reports experimental tests of two alternative explanations of how players use focal points to select equilibria in one-shot coordination games. Cognitive hierarchy theory explains coordination as the result of common beliefs about players’ pre-reflective inclinations towards the relevant strategies; the theory of team reasoning explains it as the result of the players’ using a non-st...

Nash equilibrium, team reasoning and cognitive hierarchy theory.

This paper comments on two experiments, carried out by Colman, Pulford and Rose, which investigate the prevalence of team reasoning. I argue that because the first experiment uses 'decomposable' games, it cannot discriminate between team-reasoning and the conceptually distinct 'prosocial' orientation. In the second experiment, Colman et al. find more support for the team reasoning hypothesis th...

Explaining Strategic Coordination: Cognitive Hierarchy Theory, Strong Stackelberg Reasoning, and Team Reasoning

In common interest games, players generally manage to coordinate their actions on mutually optimal outcomes, but orthodox game theory provides no reason for them to play their individual parts in these seemingly obvious solutions and no justification for choosing the corresponding strategies. A number of theories have been suggested to explain coordination, among the most prominent being versio...

A Rehabilitation of the Principle of Insufficient Reason