The 11-20 Money Request Game: Evaluating The Upper Bound Of K-level Reasoning
The authors study experimentally a two-player game which they find ideal for investigating k-level reasoning. Each player requests an amount of money between 11 and 20 shekels. He receives the amount that he requests and if he requests exactly one shekel less than the other player, he receives an additional 20 shekels. The best response function in this game is straight-forward, the k-level strategies are invariant to the two prominent level-0 specifications (randomization or attraction to salience) and the situation calls for self-interest behavior only. Therefore, they propose the game as a test for the "Upper bound" for the depth of k-level reasoning in a population.