Abstract

In this paper we develop a game-theoretic model of ambiguous pronoun resolution, namely, the pronoun reference is not clearly determined in the context. We propose that iterated best response (IBR) reasoning offers a reasonable solution to ambiguous pronoun processing. Using electroencephalogram (EEG) (14 channels) to investigate Chinese processing, we provide evidence that the processes of resolving ambiguous and unambiguous pronouns are significantly different at both neural and behavioural level. The differences mainly manifest in longer reaction time and signals collected from the channels O1 (left occipital cortex) and P8 (right inferior parietal cortex), which are activated during probabilistic expected utility generation. These findings are consistent with general assumptions of our model that ambiguous pronoun resolution involves a mechanism of decision-making.

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