Risk sensitivity and theory of mind in human coordination
Fig 8
Role of the reference point of CPT-agents in the stationary distributions of the Markov stag hunt game for several sophistication levels.
Stationary distributions of the resulting Markov chains obtained by conditioning the Markov game to increasingly sophisticated policies, k = 1, 2, 3 and 4, for CPT-agents with several reference points b = −1, 0, 1, 2. Darker colors indicate higher probability. We assumed discount factors β1 = β2 = 0.9, utility function u(x) = x, and weighting function .