Behavioral Game Theory

Behavioral Game Theory

aimed at understanding how people think about strategic interactions, especially how they try to predict others behavior

non-equilibrium play

people think strategically but not in an equilibrium way

Irrational players

any non-equilibrium player, especially those who don’t consider the startegic aspects of the game

Strategic but non perfectly rational players

try to stay one step ahead of the competition

Level K model

assumes all other players are level-k - 1, and response optimally, can make the same predictions as nash equilibrium

learning

people ofetn encounter the same situation multiple times, feedback between rounds about payoffs, use theories of intitail reactions to predict where people start and use thoeries of learning to predict how play will evolve