How to make ambiguous strategies

Pintér, Miklós (2022) How to make ambiguous strategies. Journal of Economic Theory, 202 . DOI 10.1016/j.jet.2022.105459

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Official URL: https://doi.org/10.1016/j.jet.2022.105459

Abstract

Taking advantage of ambiguity in strategic situations is well documented in the literature. However, so far there are only few results on how to make ambiguous strategies. In this paper we introduce a procedure which makes objective ambiguity, concretely it draws an element from a set of priors, defined by a belief function, in a way that it does not lead to any probability distribution over the priors. Moreover, we define the notion of ambiguous strategy, and by means of examples we show how to make ambiguous strategies in games.

Item Type:

Article

Uncontrolled Keywords:

Ambiguity, Inner measure, Belief function, Game Theory, Ambiguous strategy

JEL classification:

C72 - Noncooperative Games
D81 - Information, Knowledge, and Uncertainty: Criteria for Decision-Making under Risk and Uncertainty

Subjects:

Mathematics, Econometrics

Projects:

NKFIH K133882, NKFIH K133883, CA16228 GAMENET

DOI:

10.1016/j.jet.2022.105459