Does Reasoning Enhance Learning?
Universitat Pompeu Fabra, Department of Economics Working Paper No. 185
Posted: 11 Jun 1997
Date Written: October 1996
Utilizing the well-known Ultimatum Game, this note presents the following phenomenon. If we start with simple stimulus- response agents, learning through naive reinforcement, and then grant them some introspective capabilities, we get outcomes that are not closer but farther away from the fully introspective game-theoretic approach. The cause of this is the following: there is an asymmetry in the information that agents can deduce from their experience, and this leads to a bias in their learning process.
JEL Classification: C7, D8
Suggested Citation: Suggested Citation