Higher-Order Rationality and Introspection
28
Presented by: Aleix Garcia-Galocha
Is there any difference in how I believe my opponents reason about my rationality as opposed to the rationality of others? To address this question, we introduce introspection into the ring games (Kneeland, 2015). In these novel games with introspection, one player makes multiple decisions, forcing her to reason about how others reason about her rationality. Our objective is to assess whether the presence of introspection modifies the orders of revealed rationality compared to ring games without introspection. Although epistemic game theory does not distinguish between these scenarios, our findings reveal that introspection indeed has an effect on subjects’ revealed orders of rationality. Specifically, introspection increases the order of revealed rationality among less rational players in the classic ring game, while it decreases the order of revealed rationality among more rational players.