I investigate the decision problem of a player in a game of incomplete information who faces uncertainty about the … rationality and eliminate all strategies which are not rationalizable. Second, I apply the maximin expected utility criterion … uncertainty. A bidder following this decision criterion in a first-price auction expects all other bidders to bid their highest …

their aversion to Knightian uncertainty: When uncertainty is high, some investors exit the market. Since exiting investors … that exit is more likely when wealth is more concentrated in the hands of less uncertainty-averse investors. The model thus …

learning model with the theory of rational inattention introduced by Sims (2006). In the model firms optimally allocate …