Depth of strategic reasoning in games
journal contributionposted on 21.06.2007, 08:40 by Andrew M. Colman
Orthodox game theory assumes indefinitely recursive reasoning (‘I think that you think that I think . . .’), but human decision makers, who are limited by bounded rationality, cannot handle limitless layers of complexity. Recent research corroborates earlier findings that human players tend to operate at only one or two levels of strategic depth.