arXiv Open Access 2022

Bridging Level-K to Nash Equilibrium

Dan Levin Luyao Zhang

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Abstrak

We introduce NLK, a model that connects the Nash equilibrium (NE) and Level-K. It allows a player in a game to believe that her opponent may be either less or as sophisticated as, she is, a view supported in psychology. We apply NLK to data from five published papers on static, dynamic, and auction games. NLK provides different predictions than those of the NE and Level-K; moreover, a simple version of NLK explains the experimental data better in many cases, with the same or lower number of parameters. We discuss extensions to games with more than two players and heterogeneous beliefs.

Topik & Kata Kunci

econ.GN cs.GT stat.AP stat.CO

Penulis (2)

Dan Levin

Luyao Zhang

Format Sitasi

APA MLA BibTeX

Levin, D., Zhang, L. (2022). Bridging Level-K to Nash Equilibrium. https://arxiv.org/abs/2202.12292

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Informasi Jurnal

Tahun Terbit: 2022
Bahasa: en
Sumber Database: arXiv
Akses: Open Access ✓