6533b833fe1ef96bd129caa1

RESEARCH PRODUCT

Do individuals with higher cognitive ability play more strategically?

Penélope HernándezJuan M. Benito-ostolazaJuan A. Sanchis-llopis

subject

Economics and Econometrics050208 financeSequential game05 social sciencesComputingMilieux_PERSONALCOMPUTINGGeneral Social SciencesCognitionTest (assessment)Developmental psychologyRaven's Progressive Matrices0502 economics and business050207 economicsPsychologyhuman activitiesApplied Psychology

description

Abstract This paper experimentally analyses the relationship between cognitive ability and strategic behaviour. In our experiment, individuals play in a sequential game, where computing the equilibrium is challenging. On completion of the game, we measure each player’s cognitive ability using Raven’s Progressive Matrices test. Our results reveal that the number of strategic decisions (played in the sequential game) increases significantly among those individuals with higher cognitive ability (measured by Raven’s test), compared to those with lower cognitive ability. These results clearly confirm that individuals with higher cognitive abilities play more strategically.

yearjournalcountryeditionlanguage
2016-10-01Journal of Behavioral and Experimental Economics
https://doi.org/10.1016/j.socec.2016.01.005