Purification and disambiguation of Ellsberg equilibria

B-Tier
Journal: Economic Theory
Year: 2020
Volume: 69
Issue: 3
Pages: 595-636

Authors (2)

Benoit Decerf (not in RePEc) Frank Riedel (Universität Bielefeld)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

Abstract Recently, the use of Knightian (uncertain) strategies in normal form games has received increasing attention. The use of uncertain acts in games leads to new (Ellsberg) equilibria. We provide a foundation of the new equilibrium concept in the spirit of Harsanyi by proving an extension of the Purification Theorem for $$2\times 2$$2×2 normal form games. Our result implies that Ellsberg equilibria are limits of equilibria in slightly perturbed games with private information. In such equilibria, players use pure or maxmin strategies only.

Technical Details

RePEc Handle
repec:spr:joecth:v:69:y:2020:i:3:d:10.1007_s00199-019-01186-8
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25