The question is where you stop in that method of procedure, and if each agent can perfectly predict where the other will stop thinking about it and act, the original circular causality will return.
Explain please?
At (D,D) no agent would change their strategy, because it is a Nash equilibrum.
(D,C) collapses into (D,D). (C,D) collapses into (D,D).
At (C,C) any attempt to change strategy leads to either (D,C) or (C,D) which both collapse into (D,D).
So (C,C) forms (for lack of a better name) a reflective equilibrium. I don’t understand how you reached circular causality.
The question is where you stop in that method of procedure, and if each agent can perfectly predict where the other will stop thinking about it and act, the original circular causality will return.
Explain please?
At (D,D) no agent would change their strategy, because it is a Nash equilibrum.
(D,C) collapses into (D,D). (C,D) collapses into (D,D).
At (C,C) any attempt to change strategy leads to either (D,C) or (C,D) which both collapse into (D,D).
So (C,C) forms (for lack of a better name) a reflective equilibrium. I don’t understand how you reached circular causality.