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Data and Code for: Consistent Depth of Reasoning in Level-k Models
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Data and Code for: Consistent Depth of Reasoning in Level-k Models

David J. Cooper, Enrique Fatas, Antonio Morales and Shi Qi
ICPSR - Interuniversity Consortium for Political and Social Research
2024
DOI: 10.3886/e195045v1
url
https://doi.org/10.3886/e195045v1View
Open Access

Abstract

Level-k models often assume that individuals employ a fixed depth of reasoning across different games. We study this assumption by having subjects make choices in five classes of games chosen to identify inconsistent depth of reasoning. We demonstrate that depth of reasoning is pervasively inconsistent, changing both within and between classes of games. We show that this cannot easily be explained by factors such as subject confusion, changing beliefs about others’ depth of reasoning, stochastic choice, model misspecification, changing incentives, or low cognitive ability. We develop a simple model incorporating ambiguity aversion that predicts inconsistent depth of reasoning.

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