The traveler's dilemma: Paradoxes of rationality in game theory

  • Basu K
  • 65

    Readers

    Mendeley users who have this article in their library.
  • N/A

    Citations

    Citations of this article.

Abstract

Summary: looks at different notions of individual rationality and the paradoxes it can create via game theory and backward induction. Uses the example of the travelers dilemma wherein two travelers, having lost their similar antiques, write the replacement cost on a piece of paper (x = 2 to 100). If identical, the airline pays up. If different, the traveler with the highest price is docked while the lower price receives a bonus. Backward induction leads both sides from wanting to declare 100 to declare 2 in a one shot game under Nash equilibrium.

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Authors

  • Kaushik Basu

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free