LAUSR

We quantify the sensitivity of the traveler’s dilemma (Basu, Am Econ Rev 84:391–395, 1994) to perturbations from common knowledge. The perturbations entail a small uncertainty about the set of admissible actions. We show that the sensitivity scale is exponential in the range of admissible actions in the traveler’s dilemma. Such rapid growth is consistent with the intuition that a wider range makes the outcome of the traveler’s dilemma less intuitive.