Behavioral Game Theory

Bounded rationality, QRE, level-k, social preferences, learning models.
TUTORIALS

Behavioral Game Theory

Bounded rationality, QRE, level-k, social preferences, learning models.

Level-k thinking and cognitive hierarchy — bounded rationality in strategic games

behavioral-gt
level-k
cognitive-hierarchy
bounded-rationality

Implement the level-k model and Camerer-Ho-Chong cognitive hierarchy for the p-beauty contest, simulate heterogeneous populations, and visualize convergence to Nash equilibrium as strategic sophistication increases.

May 8, 2026

The public goods game with punishment — sustaining cooperation through costly enforcement

behavioral-gt
public-goods
punishment
cooperation

Implement the public goods game with and without costly punishment in R, simulate contribution dynamics with heterogeneous agent types, and reproduce the Fehr and Gaechter finding that punishment sustains cooperation where standard theory predicts free-riding.

May 8, 2026

Quantal response equilibrium — bridging rationality and noise

behavioral-gt
quantal-response-equilibrium
bounded-rationality
experimental-games

Implement quantal response equilibrium (QRE) in R, derive the logit equilibrium for 2x2 games, trace the QRE correspondence from uniform randomisation to Nash equilibrium, and fit QRE to experimental data from coordination and asymmetric games.

May 8, 2026

Fehr-Schmidt inequality aversion: modelling fairness in games

behavioral-gt
social-preferences
inequality-aversion

Implement the Fehr-Schmidt model of inequality aversion, where players experience disutility from both advantageous and disadvantageous inequality, and apply it to the ultimatum, dictator, and public goods games.

May 8, 2026

The ultimatum game — fairness, rejection, and bounded rationality

behavioral-gt
ultimatum-game
fairness
bounded-rationality

Analyse the ultimatum game in R, contrasting the subgame-perfect equilibrium prediction with experimental evidence on fairness norms, and implementing inequality aversion models that explain rejection behaviour.

May 8, 2026
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