Human Expectations of LLM Rationality in Strategic Games
🤖 A new laboratory experiment examines how humans respond when pitted against LLMs in a multi-player p-beauty contest versus other humans. Using a within-subject, monetarily-incentivised design, the study finds participants choose significantly lower numbers when playing against LLMs, with a marked increase in selections of the zero Nash-equilibrium. The effect concentrates among participants with strong strategic-reasoning ability, who report perceived AI reasoning and an unexpected expectation of cooperation as motivating factors.
