Strategic Thinking
68 words
1 min read
Visual companion
Python
Type and operator map
Python Week 1: the first filter for runtime behavior
View
Revision summary
What this note is really saying
Short form
# Strategic Thinking ## Levels of Reasoning Level Description Example Level 0 Random/non-strategic Choose a number Level 1 Best response to Level 0 Choose a number slightly less Level 2 Best response to Level 1 Choose even less Level $k$ Best response to Level $k-1$ Iterated reasoning ## Beauty Contest Game Guess $\...
Strategic Thinking
Levels of Reasoning
| Level | Description | Example |
|---|---|---|
| Level 0 | Random/non-strategic | Choose a number |
| Level 1 | Best response to Level 0 | Choose a number slightly less |
| Level 2 | Best response to Level 1 | Choose even less |
| Level | Best response to Level | Iterated reasoning |
Beauty Contest Game
Guess of the average of all guesses. Iterated elimination leads to 0 (the Nash equilibrium). But real players rarely go below Level 2.
Join Discord
PreviousNormal-Form GamesNextNash Equilibrium