Cognitive ability and the effect of strategic uncertainty - HAL-SHS - Sciences de l'Homme et de la Société
Journal Articles Theory and Decision Year : 2016

Cognitive ability and the effect of strategic uncertainty

Abstract

How is one's cognitive ability related to the way one responds to strategic uncertainty? We address this question by conducting a set of experiments in simple 2 × 2 dominance solvable coordination games. Our experiments involve two main treatments: one in which two human subjects interact, and another in which one human subject interacts with a computer program whose behavior is known. By making the behavior of the computer perfectly predictable, the latter treatment eliminates strategic uncertainty. We find that subjects with higher cognitive ability are more sensitive to strategic uncertainty than those with lower cognitive ability.
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Dates and versions

halshs-01261036 , version 1 (23-01-2016)

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Nobuyuki Hanaki, Nicolas Jacquemet, Stéphane Luchini, Adam Zylbersztejn. Cognitive ability and the effect of strategic uncertainty. Theory and Decision, 2016, 81 (1), pp.101-121. ⟨10.1007/s11238-015-9525-9⟩. ⟨halshs-01261036⟩
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