The absent-minded driver

The example of the ''absent-minded driver'' was introduced by Piccione and Rubinstein 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, D72. (C) 1997 Academic Press.