A note on the E-mail game: Bounded rationality and induction

In Rubinstein's (1989) E-mail game there exists no Nash equilibrium where players use strategies that condition on the E-mail communication. In this paper I restrict the utilizable information for one player. I show that in contrast to Rubinstein's result, in a payoff dominant Nash equilibrium players use strategies that condition on the number of messages sent. Therefore - induction under the assumption of bounded rational behavior of at least one player leads to a more intuitive equilibrium in the E-mail game.