Events at CERGE-EI

Prof. Mathias Sutter

University of Innsbruck, Austria

Authors: Cary Deck, Simon Czermak, Francesco Feri, Daniela Rützler and Matthias Sutter

Abstract: 

We examine the strategic sophistication of adolescents, aged 10 to 17 years, in experimental normal-form games. Besides making choices, subjects have to state their first- and second-order beliefs. We find that the ability to predict others’ real behavior and to best reply to own beliefs is dependent both on the complexity of a decision (dominant strategy for the player or his opponent, number of available strategies) and on certain individual characteristics such as math grades, the ability to play chess or the existence of siblings. Using a mixture model we estimate the probability distribution over eight different strategic and non-strategic types. We find that older subjects are more likely to eliminate dominated strategies, and that subjects with good math grades are more strategic.

Full Text: “Strategic sophistication of adolescents – Evidence from experimental normal-form games”