Behavioral Game Theory Experiments and Modeling
Colin F. Camerer*; Teck-Hua Ho† * California Institute of Technology, Pasadena, CA, USA† University of California, Berkeley, Berkeley, CA, USA
This chapter reviews recent experimental data testing game theory and behavioral models that have been inspired to explain those data. The models fall into four groups: in cognitive hierarchy or level-k models, the assumption of equilibrium is relaxed by assuming agents have beliefs about other agents who do less reasoning (i.e., some are non-strategic, and others are more strategic and understand they are playing non-strategic players). A different approach, quantal response equilibrium, retains equilibrium expectations but adds ...
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