Insights on Economic Choices From Game Theory and Cognitive Psychology
Sunday, February 15, 2009 - 17:14
in Psychology & Sociology
Game theory and insights from cognitive psychology can shed light on the economic choices people and corporations make. With more than 2.5 million observations to analyze -- as well as a laboratory recreation of the lottery using numbers 1 to 99--scientists say the results fit extremely well with the original theory. If people were accurately guessing what everyone else would do, they would pick numbers from 1 to 5000 with equal frequency, and rarely pick any higher numbers. The Swedish players, however, chose lower numbers -- numbers below 1000 -- much too often, from a strategic point of view.