Incomplete Information Games with Ambiguity Averse Players

B-Tier
Journal: American Economic Journal: Microeconomics
Year: 2020
Volume: 12
Issue: 2
Pages: 135-87

Authors (3)

Eran Hanany (not in RePEc) Peter Klibanoff (not in RePEc) Sujoy Mukerji (Queen Mary University of Londo...)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study incomplete information games with ambiguity averse players. Our focus is on equilibrium concepts satisfying sequential optimality—each player's strategy is optimal at each information set given opponents' strategies. We show sequential optimality, which does not make any explicit assumption on updating, is equivalent to sequential optimality with respect to beliefs updated using a particular generalization of Bayesian updating. Ambiguity aversion expands the set of equilibria compatible with players sharing common ambiguous beliefs. We connect ambiguity aversion with belief robustness. Examples illustrate new strategic behavior, including strategic use of ambiguity, under ambiguity aversion.

Technical Details

RePEc Handle
repec:aea:aejmic:v:12:y:2020:i:2:p:135-87
Journal Field
General
Author Count
3
Added to Database
2026-01-26