3 ms·
Probably an issue, but I'm wary of concluding it would be the dominant factor in such a complex situation. Passengers will probably also guess that offers are
by adrianmonk 9y ago
Probably an issue, but I'm wary of concluding it would be the dominant factor in such a complex situation.
Passengers will probably also guess that offers are being extended to others on the same flight, and they may feel they need to accept the offer ASAP if they don't want to lose it. Psychologically, limited time offers are powerful. (Maybe powerful enough for passengers to let themselves off the hook on greed punishment, if that is the underlying factor in the Ultimatum Game.)
Or maybe we can just say that Nash equilibrium doesn't apply here? A Nash equilibrium requires all players to know all other players' decisions/strategies, and in this game the passenger does know the airline's decision and their own decision, but they are in competition with other passengers whose decisions they don't know.