In an evolutionary model of the Incremental Centipede Game, positively biased level-1 reasoning outcompetes rational, unbiased, and negatively biased strategies, and can coexist with myopic no-reasoning players.
1992 An Experimental Study of the Cen - tipede Game
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Evolution favours positively biased reasoning in sequential interactions with high future gains
In an evolutionary model of the Incremental Centipede Game, positively biased level-1 reasoning outcompetes rational, unbiased, and negatively biased strategies, and can coexist with myopic no-reasoning players.