The Traveler's Dilemma: Paradoxes of Rationality in Game Theory¶
Basu, K. (1994). The Traveler's Dilemma: Paradoxes of Rationality in Game Theory: Paradoxes of Rationality in Game Theory. American Economic Review.
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Domain-specific¶
- Traveler's Dilemma
- The Traveler's Dilemma (Kaushik Basu, 1994) is a two-player simultaneous game that demonstrates the behavioral fragility of deep iterated dominance reasoning
This sourceBasu's original statement of the game and its purpose as a demonstration that deep iterated dominance reasoning fails behaviorally. The payoff rule of the game: both travelers paid the lower claim, with a $2 bonus to the lower claimant and a $2 penalty to the higher.
- The Traveler's Dilemma (Kaushik Basu, 1994) is a two-player simultaneous game that demonstrates the behavioral fragility of deep iterated dominance reasoning
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