Thinking about thinking about thinking is core to gossip, sarcasm, romance, dramatic irony, and nuclear
deterrence, but it is really hard to do. It requires more mental resources than finite minds often have
available. Every model of this recursive mentalizing agrees on how it should work when it works
perfectly, but models disagree about how this reasoning breaks down.
I created a contest between two rival models, where the winner correctly predicted the distribution of
errors across 32 time-pressured alternating-choice games that varied only in their payoff structures. In
nondiagnostic games, the optimal choice for lower- and higher-order reasoners is the same, while in
diagnostic games, the optimal choice for lower- and higher-order reasoners is opposite. Diagnostic games
are harder because they require participants to overcome their shallow thinking to make the best move,
and thus diagnostic games result in more errors. But the two models disagreed about which games to
classify as diagnostic or nondiagnostic, with eight classified as nondiagnostic by both, eight classified
as diagnostic only by one model, eight classified as diagnostic only by the other model, and eight
classified as diagnostic by both. This disagreement meant differing predictions about which games would
lead to more errors.
Seventy-three University of Michigan students played the games. The Blind Spot Model lost. As if blind
to specific branches, it modeled shallow reasoning as manifesting in the inability to represent entire
branches of the tree. The Near Sight Model won. As if deeper branches become blurrier, it modeled shallow
reasoning as manifesting in the inability to represent the preferences and decision making of the final
chooser, much like swapping a choice node for a chance node: a random event. More than half of first
moves were mistakes in the games it classified as diagnostic, against about a third in the rest.
This result provides modelers a more accurate way to model multi-step social reasoning, and the method
provides a clear way to diagnose shallower versus deeper recursive mentalizing.