Mixed strategies and preference for randomization in games with ambiguity averse agents

A-Tier
Journal: Journal of Economic Theory
Year: 2021
Volume: 197
Issue: C

Score contribution per author:

4.036 = (α=2.02 / 1 authors) × 2.0x A-tier

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

Abstract

We study the use of mixed strategies in games by ambiguity averse agents with a preference for randomization. Applying the decision theoretic model of Saito (2015) to games, we establish that the set of rationalizable strategies grows larger as preference for randomization weakens. An agent's preference for randomization is partially observable: given the behavior of an agent in a game, we can determine an upper bound on the strength of randomization preference for that agent. Notably, data in previous experiments on ambiguity aversion in games is not consistent with a maximal preference for randomization for approximately 30% of subjects.

Technical Details

RePEc Handle
repec:eee:jetheo:v:197:y:2021:i:c:s0022053121001435
Journal Field
Theory
Author Count
1
Added to Database
2026-01-25