This paper uses laboratory experiments to study subjects’ assessment of uncertainty resulting from strategic and non … observed for both uncertainty sources, but are more substantial for strategic uncertainty. In particular, we observe a … coordination fallacy, a violation of monotonicity whereby the probability weight placed on a symmetric coordination profile of the …

and uncertainty? We build a model where countries disagree on policy targets and how policies affect the economies, and … show that uncertainty not only determines the type of cooperative policy but also whether countries want to cooperate at … all. Countries facing larger model disagreement also need to face larger uncertainty with respect to policy spillovers to …

choice deviate from what citizens want but that an increase in uncertainty about policy outcomes decreases this distortion. …