The Absent - Minded Driver

Robert J. Aumann, Sergiu Hart and Motty Perry

(Acrobat PDF file)

The example of the "absent-minded driver" was introduced by Piccione & Rubinstein [Games and Economic Behavior 20 (1997), 3-24] in the context of games and decision problems with imperfect recall. They claim that a "paradox" or "inconsistency" arises when the decision reached at the "planning stage" is compared with that at the "action stage". Though the example is provocative and worth having, their analysis is questionable. A careful analysis reveals that while the considerations at the planning and action stages do differ, there is no paradox or inconsistency.

Journal of Economic Literature Classification Numbers: D81, C72