Optimism and Pessimism in Games
Jürgen Eichberger and
No 905, Discussion Papers from University of Exeter, Department of Economics
This paper considers the impact of ambiguity in strategic situations. It extends the earlier literature by allowing for optimistic responses to ambiguity. Ambiguity is modelled by CEU preferences. We propose a new solution concept for players who may express ambiguity- preference. Then we study comparative statics of changes in ambiguity-attitude in games with strategic complements. This gives a precise statement of the impact of ambiguity on economic behaviour.
Keywords: Ambiguity in games; support; strategic complementarity; optimism; multiple equilibria. (search for similar items in EconPapers)
JEL-codes: C72 D81 (search for similar items in EconPapers)
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Journal Article: OPTIMISM AND PESSIMISM IN GAMES (2014)
Working Paper: Optimism and Pessimism in Games (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:exe:wpaper:0905
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