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Uncertainty in the Traveler's Dilemma

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  • Gilad Bavly

Abstract

The paper analyzes a perturbation on the players’ knowledge of the game in the traveler’s dilemma, by introducing some uncertainty about the range of admissible actions. The ratio between changes in the outcomes and the size of perturbation is shown to grow exponentially in the range of the given game. This is consistent with the intuition that a wider range makes the outcome of the traveler’s dilemma more paradoxical. We compare this with the growth of the elasticity index (Bavly (2011)) of this game.

Suggested Citation

  • Gilad Bavly, 2012. "Uncertainty in the Traveler's Dilemma," Discussion Paper Series dp595, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
    • Handle: RePEc:huj:dispap:dp595
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    References listed on IDEAS

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    1. Kreps, David M. & Milgrom, Paul & Roberts, John & Wilson, Robert, 1982. "Rational cooperation in the finitely repeated prisoners' dilemma," Journal of Economic Theory, Elsevier, vol. 27(2), pages 245-252, August.
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    5. Gilad Bavly, 2011. "Elasticity of Games," Discussion Paper Series dp592, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem.
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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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