#FOCALPOINT CRON SERIES#

, n-1 players follow a normalized Poisson distribution. A level-n player from CH model would assume that the numbers level-0, 1, 2. The cognitive hierarchy (CH) theory is a derivation of level-n theory. Because of the limit of players' expectation level and players' priors, it is possible to reach an equilibrium in games without communication. Although the hierarchy of types could be indefinite, the benefits of higher levels would decrease substantially while incurring a much greater cost. Based on experimental data, most of the players only use one model to predict the behavior of all the other players.

A level-n player estimates that all other players are level-0, 1, 2. A level-1 player believes that all other players are level-0 types. choose the best responses given these priors.Ī level-0 player will choose actions regardless of the actions of other players.form priors (models) about the behavior of other players.They model the level of 'rational expectation' players by their ability to Stahl and Wilson argue that a focal point is formed because players would try to predict how other players act. The researchers have proposed theories from two aspects. Theories Īlthough the concept of a focal point has been widely accepted in game theory, it is still unclear how a focal point forms. Later, Schelling's informal experiments have been replicated under controlled conditions with monetary incentives by Judith Mehta.

There is nothing that makes Grand Central Terminal a location with a higher payoff (you could just as easily meet someone at a bar or the public library reading room), but its tradition as a meeting place raises its salience and therefore makes it a natural 'focal point'.

Schelling asked a group of students this question, and found the most common answer was 'noon at (the information booth at) Grand Central Terminal'. The most famous one is the New York City question: if you are to meet a stranger in New York City, but you cannot communicate with the person, then when and where will you choose to meet? This is a coordination game, where any place and time in the city could be an equilibrium solution.

#FOCALPOINT CRON SERIES#

The existence of the focal point is first demonstrated by Schelling with a series of questions.

Focalpoint cron