In the standard formulation of game theory, agents use mixed strategies in the form of objective and probabilistically precise devices to conceal their actions. We introduce the larger set of probabilistically imprecise devices and study the consequences for the basic results on normal form...

A long tradition suggests a fundamental distinction between situations of risk, where true objective probabilities are known, and unmeasurable uncertainties where no such probabilities are given. This distinction can be captured in a Bayesian model where uncertainty is represented by the...

For non-additive set functions, the independent product, in general, is not unique and the Fubini theorem is restricted to slice-comonotonic functions. In this paper, we use the representation theorem of Gilboa and Schmeidler (Math Oper Res 20:197–212, <CitationRef CitationID="CR16">1995</CitationRef>) to extend the Möbius product for...</citationref>

Using a large sample of retail investors as well as experimental data we find that risk and ambiguity aversion are positively correlated. We provide evidence that a common link is decision mode: intuitive thinkers tolerate more risk and ambiguity than effortful reasoners. One interpretation is...

This paper axiomatizes a recursive utility model that captures both intertemporal utility smoothing defined across time and ambiguity aversion defined over states. The resulting representation adapts Wakai (Econometrica 76:137–153, <CitationRef CitationID="CR18">2008</CitationRef>) model of intertemporal utility smoothing as an...</citationref>