We consider the social norms of repeated matching games in the presence of finite probability trembles and show that such norms must be subgame perfect along the equilibrium path but need not be subgame perfect off the equilibrium path. This is consistent with the well known experimental results...

Most models of ambiguity aversion satisfy Anscombe-Aumann's Monotonicity axiom. Monotonicity imposes separability of preferences across events that occur with unknown probability. We construct a test of Monotonicity by modifying the Allais paradox to a setting with both subjective and objective...