The presented paper proves that working time arrangements, which include hours flexibility and enable hours deposits, are appealing under product market uncertainty. The model integrates efficiency wage arguments into an implicit insurance-contract environment, thus extending the existing...

Ambiguity can be used as a strategic device in some situations. To demonstrate this, we propose and study a framework for normal form games where players can use Knightian uncertainty strategically. In such Ellsberg games, players may use Ellsberg urns in addition to the standard objective mixed...