Minimax regret and strategic uncertainty

A-Tier
Journal: Journal of Economic Theory
Year: 2010
Volume: 145
Issue: 1
Pages: 264-286

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

This paper introduces a new solution concept, a minimax regret equilibrium, which allows for the possibility that players are uncertain about the rationality and conjectures of their opponents. We provide several applications of our concept. In particular, we consider price-setting environments and show that optimal pricing policy follows a non-degenerate distribution. The induced price dispersion is consistent with experimental and empirical observations (Baye and Morgan (2004) [4]).

Technical Details

RePEc Handle
repec:eee:jetheo:v:145:y:2010:i:1:p:264-286
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29