Abstract

This paper investigates the impact of individual characteristics on behavior in strategic-form. We first measure subjects' logical abilities and social preferences and then evaluate their influence on behavior in strategic-form games. For this purpose, we estimate how logical abilities and preferences relate to the probability of a subject being of a specific behavioral type. We find that better logical abilities increase the likelihood of sophisticated behavior. This shift is stronger for subjects who are classified as selfish''. However, not even the most logically able, selfish subjects are identified as Nash types. These results have important implications for mechanism design theory.

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