Cognitive Hierarchy With Endogenous Level Selection

Behavioral game theory seeks to describe the way actual people (as compared to idealized, "rational" agents) act in strategic situations.  Kevin's Tuesdayseminar a few weeks ago gave a survey of our work in this area; in this talk, I will delve deeper into some recent work.  In our best performing model, different people think at different "levels", with the proportion of each level in the population being an parameter that we learn from the data.  But where do these proportions come from?  I will describe our work on a model that attempts to answer this question, and analyze its performance.

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