Learning in Interactive Decision-Making: The Interplay Between Cognitive Abilities and the Strategic Environment.

ABSTRACT: A remarkable feature of human intelligence is the ability to optimize our decisions based on the potential actions of others. This ability, i.e., strategic sophistication, is crucial in strategic interactions, where we need to predict others' actions (first-order beliefs), anticipate others' beliefs about our own possible actions (second-order beliefs), and optimize decisions based on such beliefs. While behavioral research has highlighted systematic departures from theoretically optimal behavior in strategic interactions, little is known about the possibility of enhancing strategic sophistication. In particular, no studies investigated whether and how the interaction between exogenous factors (i.e., the learning environment) and endogenous factors (i.e., individual cognitive abilities) sh

SUBMITTER: Zonca J 

PROVIDER: S-EPMC11793201 | biostudies-literature | 2025

REPOSITORIES: biostudies-literature