Three steps ahead

@inproceedings{Heller2012ThreeSA,
  title={Three steps ahead},
  author={Yuval Heller},
  year={2012}
}
Experimental evidence suggest that people only use 1-3 iterations of strategic reasoning, and that some people systematically use less iterations than others. In this paper, we present a novel evolutionary foundation for these stylized facts. In our model, agents interact in nitely repeated Prisoner's Dilemma, and each agent is characterized by the number of steps he thinks ahead. When two agents interact, each of them has an independent probability to observe the opponent's type. We show that… CONTINUE READING

From This Paper

Figures, tables, and topics from this paper.

Explore Further: Topics Discussed in This Paper

References

Publications referenced by this paper.
SHOWING 1-10 OF 29 REFERENCES

Evolution of Smartn Players

  • O. Stahl Dale
  • Games and Economic Behavior,
  • 1993
Highly Influential
4 Excerpts

Behavioral game theory: Experiments in strategic interaction

  • C. Camerer
  • 2003
Highly Influential
3 Excerpts

Explaining Reciprocal Behavior in Simple Strategic Games: An Evolutionary Approach, in Explaining Process and Change: Approaches to Evolutionary Economics, ed

  • W. Güth, M. Yaari
  • by U. Witt, pp
  • 1992
Highly Influential
1 Excerpt

End behavior in sequences of nite Prisoner's Dilemma supergames A learning theory approach

  • R. Selten, R. Stoecker
  • Journal of Economic Behavior & Organization, 7(1…
  • 1986
Highly Influential
7 Excerpts

Similar Papers

Loading similar papers…