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Related Experiment Video

Updated: May 13, 2026

Combining Computer Game-Based Behavioural Experiments With High-Density EEG and Infrared Gaze Tracking

Combining Computer Game-Based Behavioural Experiments With High-Density EEG and Infrared Gaze Tracking

Published on: December 16, 2010

Cyclic game dynamics driven by iterated reasoning.

Seth Frey¹, Robert L Goldstone

¹Cognitive Science, Indiana University, Bloomington, Indiana, United States of America. sethfrey@indiana.edu

|February 27, 2013

Summary

This summary is machine-generated.

Complex dynamics are common in social systems, even with simple agents. Human groups playing the Mod Game showed stable cycles, challenging economic theories of Nash equilibrium convergence.

Related Experiment Videos

Last Updated: May 13, 2026

Combining Computer Game-Based Behavioural Experiments With High-Density EEG and Infrared Gaze Tracking

Combining Computer Game-Based Behavioural Experiments With High-Density EEG and Infrared Gaze Tracking

Published on: December 16, 2010

Area of Science:

Complexity science
Behavioral economics
Game theory

Background:

Complex dynamics are theorized to be widespread in social and economic systems.
Individually simple agents can exhibit complex collective behavior.
Iterated reasoning is hypothesized to stabilize systems towards equilibrium.

Purpose of the Study:

To investigate the emergence of complex dynamics in human group interactions.
To test the impact of iterated reasoning on system stability in a game setting.
To determine if complex patterns are endogenous to social and economic systems.

Main Methods:

Human subjects played the Mod Game, a multi-player game analogous to Rock-Paper-Scissors.
The game incentivizes players to think one step ahead of others.
Observed group behavior was analyzed for periodic patterns and compared to equilibrium concepts.

Main Results:

Groups exhibited stable and efficient periodic behavior, inconsistent with fixed-point Nash equilibrium.
Observed "hopping" behavior aligns with limited iterated reasoning (approx. 2 steps).
Learning dynamics suggest agents adapt their reasoning strategy over time.

Conclusions:

Iterated reasoning, contrary to some economic theories, can drive complex emergent dynamics.
Cyclic and potentially chaotic patterns may be inherent features of real-world social and economic systems.
Findings challenge the universality of equilibrium convergence in human group behavior.