Instinctive and Cognitive Reasoning: A Study of Response Times

Lecture audiences and students were asked to respond to virtual decision and game situations at gametheory.tau.ac.il. Several thousand observations were collected and the response time for each answer was recorded. There were significant differences in response time across responses. It is suggested that choices made instinctively, that is, on the basis of an emotional response, require less response time than choices that require the use of cognitive reasoning.Response Times, Instinctive and Cognitive, Reasoning, Experimental Game Theory

Modelling the Economic Interaction of Agents with Diverse Abilities to Recognise Equilibrium Patterns

We model differences among agents in their ability to recognise temporal patterns of prices. Using the concept of DeBruijin sequences in two dynamic models of markets, we demonstrate the existence of equilibria in which prices fluctuate in a pattern that is independent of the fundamentals and that can be recognised only by the more competent agents.DeBruijin, price fluctuations, sunspots, bounded rationality, bounded recall.