@TechReport{iza:izadps:dp11326,
            	author={Fe, Eduardo and Gill, David},
            	title={Cognitive Skills and the Development of Strategic Sophistication},
            	year={2018},
	month={Feb},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={11326},
            	url={https://www.iza.org/publications/dp11326},
	abstract={In this paper we investigate how observable cognitive skills influence the development of strategic sophistication. To answer this question, we study experimentally how psychometric measures of theory-of-mind and cognitive ability (or 'fluid intelligence') work together with age to determine the strategic ability and level-k behavior of children in a variety of incentivized strategic interactions. We find that better theory-of-mind and cognitive ability predict strategic sophistication in competitive games.
Furthermore, age and cognitive ability act in tandem as complements, while age and theory-of-mind operate independently. Older children respond to information about the cognitive ability of their opponent, which provides support for the emergence of a sophisticated strategic theory-of-mind. Finally, theory-of-mind and age strongly predict whether children respond to intentions in a gift-exchange game, while cognitive ability has no influence, suggesting that different psychometric measures of cognitive skill correspond to different cognitive processes in strategic situations that involve the understanding of intentions.},
	keywords={cognitive skills;theory-of-mind;cognitive ability;fluid intelligence;strategic sophistication;age;children;experiment;level-k;bounded rationality;non-equilibrium thinking;intentions;gift-exchange game;competitive game;strategic game;strategic interaction},
            }