title: Fluid Intelligence and Cognitive Reflection in a Strategic Environment: Evidence from Dominance-Solvable Games.
abstract: Dominance solvability is one of the most straightforward solution concepts in game theory. It is based on two principles: dominance (according to which players always use their dominant strategy) and iterated dominance (according to which players always act as if others apply the principle of dominance). However, existing experimental evidence questions the empirical accuracy of dominance solvability. In this study, we study the relationships between the key facets of dominance solvability and two cognitive skills, cognitive reflection, and fluid intelligence. We provide evidence that the behaviors in accordance with dominance and one-step iterated dominance are both predicted by one's fluid intelligence rather than cognitive reflection. Individual cognitive skills, however, only explain a small fraction of the observed failure of dominance solvability. The accuracy of theoretical predictions on strategic decision making thus not only depends on individual cognitive characteristics, but also, perhaps more importantly, on the decision making environment itself.
authors: Université Côte d'Azur, Centre National de la Recherche Scientifique, GREDEG Valbonne, France.
authors: Nobuyuki
authors: N
authors: Hanaki
authors: CES, Paris School of Economics and University Paris 1 Panthéon-Sorbonne Paris, France.
authors: Nicolas
authors: N
authors: Jacquemet
authors: Aix-Marseille University (Aix-Marseille School of Economics), Centre National de la Recherche Scientifique and EHESS Marseille, France.
authors: Stéphane
authors: S
authors: Luchini
authors: Univ Lyon, Université Lumière Lyon 2, GATE L-SE UMR 5824 Ecully, France.
authors: Adam
authors: A
authors: Zylbersztejn
keywords: C72; CRT; D83; Raven's test; cognitive skills; dominance solvability; experiment