Tuesday, August 3, 2021

Why do 25% of people get so easily duped?

MarginalRevolution.com has the answer:  because they don't "look ahead and reason back," one of the maxims from our textbook.  In the simple game below, solved by backward induction (look ahead to the last move by the third player to see what the second and then the first player should do), 75% of fifth graders learned to look two steps ahead (as the first player) to correctly anticipate what the second and third players would do:

Player 3 is simply asked to match a shape. 

Player 2 earns the most by choosing the color chosen by Player 3. Of course, Player 2 doesn’t know what color Player 3 will choose and so has to reason about Player 3’s actions.

Player 1 earns the most by choosing the same letter as Player 2 but now must reason about Player 2 which involves reasoning about how Player 2 will reason about Player 3. 


Interestingly, women and those interested in STEM do better.  

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