Risk sensitivity and theory of mind in human coordination
Fig 6
Effect of sophistication in value and policies in the Markov stag hunt game.
(a) CPT values of the agent states, for sophistication levels k = 1, 2, 3 and 4. Joint states with redder colors have higher value. (b) Policies for sophistication levels k = 1, 2, 3 and 4. Joint states with darker color indicate higher probability. The value of the stag state grows with the sophistication level. We assumed reference points b1 = b2 = 0, discount factors β1 = β2 = 0.9, utility function u(x) = x and probability weighting .