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The E-mail Game Revisited - Modeling Rough Inductive Reasoning

Dulleck, Uwe (2007) The E-mail Game Revisited - Modeling Rough Inductive Reasoning. International Game Theory Review (IGTR), 9(2), pp. 323-339.

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Abstract

I study the robustness of Rubinstein's (1989) E-Mail Game results by varying the information that players can utilize. The article follows one of Morris' (2002) reactions to the E-Mail game "that one should try to come up with a model of boundedly rational behavior that delivers predictions that are insensitive to whether there is common knowledge or a large number of levels of knowledge". Players in my model are presumed to use 'rough inductive reasoning' because they cannot utilize exact information.

The information structure in the E-Mail game is generalized and the conditions are characterized under which Rubinstein's results hold. I find that rough inductive reasoning generates a payoff dominant equilibrium where the expected payoffs change continuously (instead of discretely) in the probability of "faulty" communication.

Impact and interest:

1 citations in Scopus
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ID Code: 15074
Item Type: Journal Article
Keywords: Inductive reasoning, JEL, Classification, C72
DOI: 10.1142/S0219198907001424
ISSN: 0219-1989
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > Economic Theory (140100) > Mathematical Economics (140103)
Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > Economic Theory (140100) > Microeconomic Theory (140104)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 2007 World Scientific Publishing
Copyright Statement: Electronic version of an article published as [International Game Theory Review (IGTR) 9(2):pp. 323-339.] [http://dx.doi.org/10.1142/S0219198907001424] © [copyright World Scientific Publishing Company]
Deposited On: 09 Oct 2008
Last Modified: 29 Feb 2012 23:34

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