Hm, if I query the LLM it tells me about cognitive hierarchy theory, and the Keynesian beauty contest. But my point is, humans are not perfectly rational beings

Hm, if I query the LLM it tells me about cognitive hierarchy theory, and the Keynesian beauty contest. But my point is, humans are not perfectly rational beings, and sometimes for a reason. (Like assuming that there is more uncertainty than the stated rules imply. Or altruistic behaviour that benefits the group as a whole. And we also have a default to imitate each other, see Joseph Henrich's 2016 Book.) Some of those defaults are culturally learned and leak into pure mathematical games (see e.g. the ultimatum game).