Explaining focal points: Cognitive hierarchy theory versus team reasoning

Arbeitspapier

This paper reports experimental tests of two alternative explanations of how players use focal points to select equilibria in one-shot coordination games. Cognitive hierarchy theory explains coordination as the result of common beliefs about players' pre-reflective inclinations towards the relevant strategies; the theory of team reasoning explains it as the result of the players' using a non-standard form of reasoning. We report two experiments. One finds strong support for team reasoning; the other supports cognitive hierarchy theory. In the light of additional questionnaire evidence, we conclude that players' reasoning is sensitive to the decision context.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CeDEx Discussion Paper Series ; No. 2008-17

Classification and Topics

• Classification: Wirtschaft ; Noncooperative Games ; Design of Experiments: Laboratory, Group Behavior
• Subject: salience ; focal point ; cognitive hierarchy ; team reasoning ; Spieltheorie ; Kognition

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bardsley, Nicholas ; Mehta, Judith ; Starmer, Chris ; Sugden, Robert
• Event: Veröffentlichung
• (who): The University of Nottingham, Centre for Decision Research and Experimental Economics (CeDEx)
• (where): Nottingham
• (when): 2008

Further information

• Handle: http://hdl.handle.net/10419/49663
• Last update: 10.03.2025, 11:41 AM CET