A sophisticated player is an individual who takes the action of the opponents, in a strategic situation, as determined by decision of rational opponents, and acts accordingly. A sophisticated agent is rational in the choice of his action, but ignores the fact that he is part of a strategic situation. We discuss a notion of equilibrium with sophisticated agents, we provide conditions for its existence, and argue that it differs systematically from the Nash equilibrium.
|Place of Publication||Tilburg|
|Number of pages||26|
|Publication status||Published - 1998|
|Name||CentER Discussion Paper|
- Procedural rationality
- sophisticated agents