English, Article edition: THE E-MAIL GAME REVISITED â MODELING ROUGH INDUCTIVE REASONING UWE DULLECK

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Bookmark: http://trove.nla.gov.au/version/144860
Physical Description
  • article
Language
  • English

Edition details

Title
  • THE E-MAIL GAME REVISITED â MODELING ROUGH INDUCTIVE REASONING
Author
  • UWE DULLECK
Physical Description
  • article
Notes
  • 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.
  • Inductive reasoning, JEL-Classification: C72
  • RePEc:wsi:igtrxx:v:09:y:2007:i:02:p:323-339
Language
  • English
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