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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...
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The large majority of risk-sharing transactions involve few agents, each of whom can heavily influence the structure … problems have unique solutions. The risk-sharing Nash equilibrium admits a finite-dimensional characterisation and it is proved … future random outcomes different than their actual probability assessments, and the risk-sharing securities are endogenously …
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We consider games with incomplete information a la Harsanyi, where the payoff of a player depends on an unknown state of nature as well as on the profile of chosen actions. As opposed to the standard model, players' preferences over state--contingent utility vectors are represented by arbitrary...
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