A note on the E-mail game: Bounded rationality and induction

Uwe Dulleck

No 1997,47, SFB 373 Discussion Papers from Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes

Abstract: In Rubinstein's (1989) E-mail game there exists no Nash equilibrium where players use strategies that condition on the E-mail communication. In this paper I restrict the utilizable information for one player. I show that in contrast to Rubinstein's result, in a payoff dominant Nash equilibrium players use strategies that condition on the number of messages sent. Therefore - induction under the assumption of bounded rational behavior of at least one player leads to a more intuitive equilibrium in the E-mail game.

Keywords: Induction; Subgame Perfect Equilibrium; Information sets; Imperfect recall (search for similar items in EconPapers)
JEL-codes: C72 (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:sfb373:199747

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