IDEAS home Printed from https://ideas.repec.org/a/eee/matsoc/v77y2015icp52-54.html
   My bibliography  Save this article

A note on the equilibria of the unbounded traveler’s dilemma

Author

Listed:
  • Ispano, Alessandro

Abstract

When there is no upward limit on admissible claims, the traveler’s dilemma admits a continuum of symmetric mixed strategy equilibria in addition to the pure strategy equilibrium in which both players ask and obtain the minimum. The payoff of any of these equilibria exceeds the payoff of the pure strategy one and any claim represents an attainable payoff. If the distinction between a large and an unbounded action set is fuzzy, this result can explain some puzzling stylized facts on the behavior of experimental subjects in the game.

Suggested Citation

  • Ispano, Alessandro, 2015. "A note on the equilibria of the unbounded traveler’s dilemma," Mathematical Social Sciences, Elsevier, vol. 77(C), pages 52-54.
    • Handle: RePEc:eee:matsoc:v:77:y:2015:i:c:p:52-54
    DOI: 10.1016/j.mathsocsci.2015.07.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165489615000657
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.mathsocsci.2015.07.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Baye, Michael R. & Kovenock, Dan & de Vries, Casper G., 2012. "The Herodotus paradox," Games and Economic Behavior, Elsevier, vol. 74(1), pages 399-406.
    2. Ariel Rubinstein, 2006. "Dilemmas of an Economic Theorist," Econometrica, Econometric Society, vol. 74(4), pages 865-883, July.
    3. Erlei, Mathias, 2008. "Heterogeneous social preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 65(3-4), pages 436-457, March.
    4. Benoit, Jean-Pierre, 1988. "A non-equilibrium analysis of the finitely-repeated prisoner's dilemma," Mathematical Social Sciences, Elsevier, vol. 16(3), pages 281-287, December.
    5. Kenneth Hendricks & Charles Wilson, 1992. "Equilibrium in Preemption Games with Complete Information," Palgrave Macmillan Books, in: Mukul Majumdar (ed.), Equilibrium and Dynamics, chapter 6, pages 123-147, Palgrave Macmillan.
    6. Rapoport, Amnon & Stein, William E. & Parco, James E. & Nicholas, Thomas E., 2003. "Equilibrium play and adaptive learning in a three-person centipede game," Games and Economic Behavior, Elsevier, vol. 43(2), pages 239-265, May.
    7. Hendricks, Ken & Weiss, Andrew & Wilson, Charles A, 1988. "The War of Attrition in Continuous Time with Complete Information," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(4), pages 663-680, November.
    8. Jacob K. Goeree & Charles A. Holt, 2001. "Ten Little Treasures of Game Theory and Ten Intuitive Contradictions," American Economic Review, American Economic Association, vol. 91(5), pages 1402-1422, December.
    9. C. Monica Capra, 1999. "Anomalous Behavior in a Traveler's Dilemma?," American Economic Review, American Economic Association, vol. 89(3), pages 678-690, June.
    10. Rosenthal, Robert W., 1981. "Games of perfect information, predatory pricing and the chain-store paradox," Journal of Economic Theory, Elsevier, vol. 25(1), pages 92-100, August.
    11. Simon P. Anderson & Jacob K. Goeree & Charles A. Holt, 2002. "The Logit Equilibrium: A Perspective on Intuitive Behavioral Anomalies," Southern Economic Journal, John Wiley & Sons, vol. 69(1), pages 21-47, July.
    12. Basu, Kaushik, 1994. "The Traveler's Dilemma: Paradoxes of Rationality in Game Theory," American Economic Review, American Economic Association, vol. 84(2), pages 391-395, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gisèle Umbhauer, 2019. "Traveler’s dilemma : how the value of the luggage influences behavior," Working Papers of BETA 2019-13, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Velu, C. & Iyer, S., 2008. "The Rationality of Irrationality for Managers: Returns- Based Beliefs and the Traveller’s Dilemma," Cambridge Working Papers in Economics 0826, Faculty of Economics, University of Cambridge.
    2. Tilman Becker & Michael Carter & Jörg Naeve, 2005. "Experts Playing the Traveler's Dilemma," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 252/2005, Department of Economics, University of Hohenheim, Germany.
    3. Ismail, Mehmet, 2014. "Maximin equilibrium," MPRA Paper 97401, University Library of Munich, Germany.
    4. Kaushik Basu & Leonardo Becchetti & Luca Stanca, 2011. "Experiments with the Traveler’s Dilemma: welfare, strategic choice and implicit collusion," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 37(4), pages 575-595, October.
    5. Damjanovic, Vladislav, 2017. "Two “little treasure games” driven by unconditional regret," Economics Letters, Elsevier, vol. 150(C), pages 99-103.
    6. Schmutzler, Armin, 2011. "A unified approach to comparative statics puzzles in experiments," Games and Economic Behavior, Elsevier, vol. 71(1), pages 212-223, January.
    7. Mehmet S. Ismail, 2019. "Super-Nash performance in games," Papers 1912.00211, arXiv.org, revised Sep 2023.
    8. Ispano, Alessandro & Schwardmann, Peter, 2017. "Cooperating over losses and competing over gains: A social dilemma experiment," Games and Economic Behavior, Elsevier, vol. 105(C), pages 329-348.
    9. Philip A. Haile & Ali Hortaçsu & Grigory Kosenok, 2008. "On the Empirical Content of Quantal Response Equilibrium," American Economic Review, American Economic Association, vol. 98(1), pages 180-200, March.
    10. Jacob K. Goeree & Charles A. Holt, 2001. "Ten Little Treasures of Game Theory and Ten Intuitive Contradictions," American Economic Review, American Economic Association, vol. 91(5), pages 1402-1422, December.
    11. Kaushik Basu, 2009. "How Sapient is Homo Economicus? The Evolutionary Origins of Trade, Ethics and Economic Rationality," Working Papers id:2240, eSocialSciences.
    12. Simon P. Anderson & Jacob K. Goeree & Charles A. Holt, 2002. "The Logit Equilibrium: A Perspective on Intuitive Behavioral Anomalies," Southern Economic Journal, John Wiley & Sons, vol. 69(1), pages 21-47, July.
    13. Charles A. Holt, 2003. "Economic Science: An Experimental Approach for Teaching and Research," Southern Economic Journal, John Wiley & Sons, vol. 69(4), pages 754-771, April.
    14. Andrea Morone & Piergiuseppe Morone, 2016. "The Focal Point In The Traveller'S Dilemma: An Experimental Study," Bulletin of Economic Research, Wiley Blackwell, vol. 68(S1), pages 123-132, December.
    15. Lensberg, Terje & Schenk-Hoppé, Klaus Reiner, 2021. "Cold play: Learning across bimatrix games," Journal of Economic Behavior & Organization, Elsevier, vol. 185(C), pages 419-441.
    16. Brañas-Garza, Pablo & Espinosa, María Paz & Rey-Biel, Pedro, 2011. "Travelers' types," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1-2), pages 25-36, April.
    17. Ismail, Mehmet, 2014. "Maximin equilibrium," MPRA Paper 97322, University Library of Munich, Germany.
    18. Kaushik Basu, 2016. "Beyond the Invisible Hand: Groundwork for a New Economics," Economics Books, Princeton University Press, edition 1, number 9299.
    19. Yefen Chen & Xuanming Su & Xiaobo Zhao, 2012. "Modeling Bounded Rationality in Capacity Allocation Games with the Quantal Response Equilibrium," Management Science, INFORMS, vol. 58(10), pages 1952-1962, October.
    20. García-Pola, Bernardo & Iriberri, Nagore & Kovářík, Jaromír, 2020. "Non-equilibrium play in centipede games," Games and Economic Behavior, Elsevier, vol. 120(C), pages 391-433.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:matsoc:v:77:y:2015:i:c:p:52-54. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505565 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.