Microeconomics Seminar 2021-2022
joint with the Département de sciences économiques, Université de Montréal
In-person : room C-6070-9 (U. de Montréal, Pavillon Lionel-Groulx, 3150, rue Jean-Brillant)
Organizer : Nicolas Klein (U. of Montreal)
Résumé: In the canonical model of bounded rationality each player best-responds to their belief that other players reason to some finite level. We propose a novel behavior that reflects the player’s belief that while other players may be rational, the player cannot model and hence predict the behavior of others. This encompasses a situation where a player believes that their opponent can reason to a higher level than they do. We propose an identification strategy for such behavior, and evaluate it experimentally.