Advanced Search
MyIDEAS: Login to save this paper or follow this series

Imperfect Recall and Time Inconsistencies: An experimental test of the absentminded driver "paradox"

Contents:

Author Info

  • Vittoria M. Levati

    (Max Planck Institute of Economics, Strategic Interaction Group, Jena, Germany)

  • Matthias Uhl

    (Max Planck Institute of Economics, Strategic Interaction Group, Jena, Germany)

  • Ro'i Zultan

    ()
    (Max Planck Institute of Economics, Strategic Interaction Group, Jena, Germany)

Abstract

Absentmindedness is a special case of imperfect recall which according to Piccione and Rubinstein (1997a) leads to time inconsistencies. Aumann, Hart and Perry (1997a) question their argument and show how dynamic inconsistencies can be resolved. The present paper explores this issue from a descriptive point of view by examining the behavior of absentminded individuals in a laboratory environment. Absentmindedness is manipulated in two ways. In one treatment, it is induced by cognitively overloading participants. In the other, it is imposed by randomly matching decisions with decision nodes in the information set. The results provide evidence for time inconsistencies in all treatments. We introduce a behavioral principal, which best explains the data.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.wiwi.uni-jena.de/Papers/jerp2010/wp_2010_035.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2010-035.

as in new window
Length:
Date of creation: 16 Jun 2010
Date of revision:
Handle: RePEc:jrp:jrpwrp:2010-035

Contact details of provider:
Postal: Carl-Zeiss-Strasse 3, 07743 JENA
Phone: +049 3641/ 9 43000
Fax: +049 3641/ 9 43000
Web page: http://www.jenecon.de
More information through EDIRC

Related research

Keywords: imperfect recall; absentmindedness; dynamic inconsistency; experiment;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Huck, Steffen & Müller, Wieland, 2000. "Absent-minded drivers in the lab: Testing Gilboa's model," SFB 373 Discussion Papers 2000,45, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
  2. Jeffrey Kline, 2005. "Imperfect recall and the relationships between solution concepts in extensive games," Economic Theory, Springer, Springer, vol. 25(3), pages 703-710, 04.
  3. Rubinstein, Ariel, 1986. "Finite automata play the repeated prisoner's dilemma," Journal of Economic Theory, Elsevier, Elsevier, vol. 39(1), pages 83-96, June.
  4. Oliver Board, 2003. "The Not-So-Absent-Minded Driver," Economics Series Working Papers 147, University of Oxford, Department of Economics.
  5. Grove, Adam J. & Halpern, Joseph Y., 1997. "On the Expected Value of Games with Absentmindedness," Games and Economic Behavior, Elsevier, Elsevier, vol. 20(1), pages 51-65, July.
  6. Lehrer, Ehud, 1988. "Repeated games with stationary bounded recall strategies," Journal of Economic Theory, Elsevier, Elsevier, vol. 46(1), pages 130-144, October.
  7. Epstein, Larry G. & Schneider, Martin, 2003. "Recursive multiple-priors," Journal of Economic Theory, Elsevier, Elsevier, vol. 113(1), pages 1-31, November.
  8. Aumann, Robert J. & Hart, Sergiu & Perry, Motty, 1997. "The Absent-Minded Driver," Games and Economic Behavior, Elsevier, Elsevier, vol. 20(1), pages 102-116, July.
  9. Gilboa, Itzhak & Schmeidler, David, 1989. "Maxmin expected utility with non-unique prior," Journal of Mathematical Economics, Elsevier, vol. 18(2), pages 141-153, April.
  10. Halpern, Joseph Y., 1997. "On Ambiguities in the Interpretation of Game Trees," Games and Economic Behavior, Elsevier, Elsevier, vol. 20(1), pages 66-96, July.
  11. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, Springer, vol. 10(2), pages 171-178, June.
  12. Gilboa, Itzhak, 1997. "A Comment on the Absent-Minded Driver Paradox," Games and Economic Behavior, Elsevier, Elsevier, vol. 20(1), pages 25-30, July.
  13. Lipman, Barton L., 1997. "More Absentmindedness," Games and Economic Behavior, Elsevier, Elsevier, vol. 20(1), pages 97-101, July.
  14. Deck, Cary & Sarangi, Sudipta, 2009. "Inducing imperfect recall in the lab," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 69(1), pages 64-74, January.
  15. Battigalli, Pierpaolo, 1997. "Dynamic Consistency and Imperfect Recall," Games and Economic Behavior, Elsevier, Elsevier, vol. 20(1), pages 31-50, July.
  16. Aumann, Robert J. & Hart, Sergiu & Perry, Motty, 1997. "The Forgetful Passenger," Games and Economic Behavior, Elsevier, Elsevier, vol. 20(1), pages 117-120, July.
  17. Yaakov Kareev & Massimo Warglien, 2003. "Cognitive Overload and the Evaluation of Risky Alternatives: The Effects of Sample Size, Information Format and Attitude To Risk," Discussion Paper Series, The Center for the Study of Rationality, Hebrew University, Jerusalem dp340, The Center for the Study of Rationality, Hebrew University, Jerusalem.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:jrp:jrpwrp:2010-035. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Markus Pasche).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.