Eichberger, Jürgen; Kelsey, David; Schipper, Burkhard C. - Volkswirtschaftliche Fakultät, … - 2005
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...