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Two partners try to dissolve a partnership that owns an asset of ambiguous value, where the value is determined ex post by a draw from an Ellsberg urn. In a within-subject experiment, subjects make decisions in three different bargaining mechanisms: unstructured bargaining, the Texas shoot-out,...
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frameworks endowed with a common prior. When communication is private and nobody is excluded from it, we show that ambiguity …-free communication is a necessary and sufficient condition for a consensus to emerge. However, when communication is public, ambiguity …
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This paper proposes that the ambiguity reflected by a set of priors remains unchanged when the set is translated within … the probability simplex, i.e. ambiguity is location invariant. This unifies and generalises numerous influential … definitions of ambiguity in the literature. Location invariance is applied to normal form games where players perceive strategic …
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