Intelligent escalation and the principle of relativity

Abstract: Escalation is the fact that in a game (for instance in an auction), the agents play forever. The $0,1$-game is an extremely simple infinite game with intelligent agents in which escalation arises. It shows at the light of research on cognitive psychology the difference between intelligence (algorithmic mind) and rationality (algorithmic and reflective mind) in decision processes. It also shows that depending on the point of view (inside or outside) the rationality of the agent may change which is proposed to be called the principle of relativity.