Learning Strategic Sophistication

CentER Discussion Paper No. 2005-59

41 Pages Posted: 17 May 2005

See all articles by Andreas Blume

Andreas Blume

University of Pittsburgh - Department of Economics

Douglas V. DeJong

University of Iowa - Tippie College of Business

Michael S. Maier

University of Alberta - Alberta School of Business

Date Written: December 2004

Abstract

We experimentally investigate coordination games in which cognition plays an important role, i.e., where outcomes are affected by the agents level of understanding of the game and the beliefs they form about each others' understanding. We ask whether and when repeated exposure permits agents to learn to improve cognition in a strategic setting. We find evidence for strategic sophistication being learned, generalized and promoted. Agents acquire strategic sophistication in simple settings. They may fail to do so in similar but more demanding settings. Given the opportunity, they transfer learning from the simple to the more demanding task. There is heterogeneity in sophistication. We find some evidence for sophisticated agents trying to spread sophistication early in the game, provided there is a long enough time horizon.

Keywords: Noncooperative games, laboratory group behavior

JEL Classification: C72, C92

Suggested Citation

Blume, Andreas and DeJong, Douglas V. and Maier, Michael, Learning Strategic Sophistication (December 2004). CentER Discussion Paper No. 2005-59, Available at SSRN: https://ssrn.com/abstract=721390 or http://dx.doi.org/10.2139/ssrn.721390

Andreas Blume (Contact Author)

University of Pittsburgh - Department of Economics ( email )

4901 Wesley Posvar Hall
230 South Bouquet Street
Pittsburgh, PA 15260
United States

Douglas V. DeJong

University of Iowa - Tippie College of Business ( email )

108 Pappajohn Business Building
Iowa City, IA 52242-1000
United States
319-335-0919 (Phone)

Michael Maier

University of Alberta - Alberta School of Business ( email )

2-30C Business Building
Edmonton, Alberta T6G 2R6
Canada
7802481275 (Phone)

HOME PAGE: http://https://business.ualberta.ca/about/contact-us/school-directory/michael-maier

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