Social and strategic ambiguity versus betrayal aversion

B-Tier
Journal: Games and Economic Behavior
Year: 2020
Volume: 123
Issue: C
Pages: 272-287

Authors (3)

Li, Chen (not in RePEc) Turmunkh, Uyanga (not in RePEc) Wakker, Peter P. (Erasmus Universiteit Rotterdam)

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

This paper examines the difference between strategic ambiguity as in game theory and ambiguity arising in individual decisions. We identify a new, non-strategic component underlying all strategic ambiguities, called social ambiguity. We recommend controlling for it to better identify strategic causes. Thus, we shed new light on Bohnet and Zeckhauser's betrayal aversion in the trust game. We first show theoretically that, contrary to preceding claims in the literature, ambiguity attitudes can play a role here. We then show experimentally that social ambiguity, rather than betrayal aversion, can explain our empirical findings. Using our new control, we identify the unique effect of strategic ambiguity. Strategic complexity increases ambiguity perception and thus increases people's likelihood insensitivity when making decisions under strategic ambiguity. Our results show the usefulness of controlling for ambiguity attitudes before speculating on strategic factors.

Technical Details

RePEc Handle
repec:eee:gamebe:v:123:y:2020:i:c:p:272-287
Journal Field
Theory
Author Count
3
Added to Database
2026-01-29