Uncertain acts in games
Frank Riedel ()
No 571, Center for Mathematical Economics Working Papers from Center for Mathematical Economics, Bielefeld University
This text reviews a recent approach to modeling "radically uncertain" behavior in strategic interactions. By rigorously rooting the approach in decision theory, we provide a foundation for applications of Knightian uncertainty in mechanism design, principal agent and moral hazard models. We discuss critical assessments and provide alternative interpretations of the new equilibria in terms of equilibrium in beliefs, and as a boundedly rational equilibrium in the sense of a population equilibrium. We also discuss the purification of equilibria in the spirit of Harsanyi.
Keywords: Knightian Uncertainty in Games; Strategic Ambiguity; Ellsberg Games; Purification (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-gth, nep-hpe and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
https://pub.uni-bielefeld.de/download/2909171/2909172 First Version, 2017 (application/x-download)
Journal Article: Uncertain Acts in Games (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bie:wpaper:571
Access Statistics for this paper
More papers in Center for Mathematical Economics Working Papers from Center for Mathematical Economics, Bielefeld University Contact information at EDIRC.
Bibliographic data for series maintained by Bettina Weingarten ().