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This paper studies the impact of ambiguity in the best shot and weakest link models of public good provision. The models are ?rst analysed theoretically. Then we conduct experiments to study how ambiguity affects behaviour in these games. We test whether subjects? perception of ambiguity differs...
Persistent link: https://www.econbiz.de/10011269601
We report an experimental test of the influence of ambiguity on behaviour in a coordination game. We study the behaviour of subjects in the presence of ambiguity and attempt to determine whether they prefer to choose an ambiguity safe option. We fi?nd that this strategy, which is not played in...
Persistent link: https://www.econbiz.de/10010883468
We examine the effect of Knightian uncertainty in a simple model of public good provision. We find that uncertainty may reduce free-riding if utility is concave or there are decreasing returns to scale in the production of public goods. Comparative statics analysis shows that increases in...
Persistent link: https://www.econbiz.de/10005146575
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This paper introduces E-capacities as a representation of beliefs which incorporates objective information about the probability of events. It can be shown that the Choquet integral of an E-capacity is the Ellsberg representation. The paper further explores properties of this representation of...
Persistent link: https://www.econbiz.de/10005357547
We examine the effect of introducing Knightian uncertainty into a simple model of public good provision. We find that uncertainty may reduce the free-rider problem if utility is concave in public goods or there are decreasing returns to scale in the production of public goods. It is possible...
Persistent link: https://www.econbiz.de/10005357555
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In this paper we analyse the consequences of Knightian uncertainty for partnerships with symmetric linear production functions are analysed in a CEU framework. We propose an extension of Nash equilibrium in pure strategies for CEU-games with strategic uncertainty. We find that the presence of...
Persistent link: https://www.econbiz.de/10005357594