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Cognitive Empathy in Conflict Situations

Listed author(s):
  • Florian Gauer

    ()

    (Bielefeld University)

  • Christoph Kuzmics

    ()

    (University of Graz)

Two individuals are involved in a conflict situation in which preferences are ex ante uncertain. While they eventually learn their own preferences, they have to pay a small cost if they want to learn their opponent’s preferences. We show that, for sufficiently small positive costs of information acquisition, in any Bayesian Nash equilibrium of the resulting game of incomplete information the probability of getting informed about the opponent’s preferences is bounded away from zero and one.

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File URL: http://www100.uni-graz.at/vwlwww/forschung/RePEc/wpaper/2016-02.pdf
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Paper provided by University of Graz, Department of Economics in its series Graz Economics Papers with number 2016-02.

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Date of creation: Jan 2016
Handle: RePEc:grz:wpaper:2016-02
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