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Hellmann, Tobias; Thijssen, Jacco J. J. - 2015

strongly rectangular set of priors. We develop a strategy and equilibrium concept allowing for ambiguity and show that … motion and kappa-ambiguity does not equate to "lowest trend". …

Persistent link: https://www.econbiz.de/10010468336

A Theory of Endogenous Time Preference, and Discounted Utility Anomalies

Boyarchenko, Svetlana; Levendorskii, Sergei - 2005

We explain essentially all known discounted utility anomalies as artefacts of the optimizing behavior of an individual with a time-separable utility function, who perceives a good as a source of a stochastic consumption stream, and believes that she can wait for an optimal moment to buy or sell...

Persistent link: https://www.econbiz.de/10014066800

Subgame-perfect equilibria in stochastic timing games

Riedel, Frank; Steg, Jan-Henrik - 2014

We introduce a notion of subgames for stochastic timing games and the related notion of subgame-perfect equilibrium in possibly mixed strategies. While a good notion of subgame-perfect equilibrium for continuous-time games is not available in general, we argue that our model is the appropriate...

Persistent link: https://www.econbiz.de/10010406213

Symmetric equilibria in stochastic timing games

Steg, Jan-Henrik - 2015

We construct subgame-perfect equilibria with mixed strategies for symmetric stochastic timing games with arbitrary strategic incentives. The strategies are qualitatively different for local first- or second-mover advantages, which we analyse in turn. When there is a local second-mover advantage,...

Persistent link: https://www.econbiz.de/10011296327

A Feedback Stackelberg Game of Cooperative Advertising in a Durable Goods Oligopoly

Chutani, Anshuman - 2020

Cooperative advertising is an important mechanism used by manufacturers to influence retailers' promotional decisions. In a typical arrangement, the manufacturer agrees to reimburse a fraction of a retailer's advertising cost, known as the subsidy rate. We consider a case of new product adoption...

Persistent link: https://www.econbiz.de/10012832940

Chapter 17. Ambiguity and Nonexpected Utility

Karni, Edi; Maccheroni, Fabio; Marinacci, Massimo - In: Handbook of game theory with economic applications : …, (pp. 901-947). 2015

depart from the sure thing principle and model the phenomenon of ambiguity and ambiguity aversion. …

Persistent link: https://www.econbiz.de/10014025442

Ambiguity and social interaction

Eichberger, Jürgen; Kelsey, David; Schipper, Burkhard - 2005

We present a non-technical account of ambiguity in strategic games and show how it may be applied to economics and … social sciences. Optimistic and pessimistic responses to ambiguity are formally modelled. We show that pessimism has the … ambiguity on peace-making are examined. It is shown that ambiguity may select equilibria in coordination games with multiple …

Persistent link: https://www.econbiz.de/10010371082

Cautious belief formation

Bleile, Jörg - 2014

We provide an axiomatic approach to a belief formation process in an informational environment characterized by limited, heterogenous and differently precise information. For a list of previously observed cases an agent needs to express her belief by assigning probabilities to possible outcomes....

Persistent link: https://www.econbiz.de/10010356678

Social anchor effects in decision-making under ambiguity

Lahno, Amrei M. - 2014

I experimentally examine whether feedback about others' choices provides an anchor for decision-making under ambiguity … relative ambiguity attitude (compared to the peer's) significantly matters for shifts in individual attitudes, and that … dynamics considerably differ between gain and loss domains. For gains, learning to be comparably ambiguity averse increases the …

Persistent link: https://www.econbiz.de/10010364762

The evolutionary stability of optimism, pessimism and complete ignorance

Schipper, Burkhard - 2005

We provide an evolutionary foundation to evidence that in some situations humans maintain optimistic or pessimistic attitudes towards uncertainty and are ignorant to relevant aspects of the environment. Players in strategic games face Knightian uncertainty about opponents' actions and maximize...

Persistent link: https://www.econbiz.de/10010366542