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We present a non-technical account of ambiguity in strategic games and show how it may be applied to economics and social sciences. Optimistic and pessimistic responses to ambiguity are formally modelled. We show that pessimism has the effect of increasing (decreasing) equilibrium prices under...
Persistent link: https://www.econbiz.de/10011422157
outcome where price equals marginal cost. In this paper we show that this result is not robust to the slightest asymmetry in …
Persistent link: https://www.econbiz.de/10011422170