Irrationality and ambiguity in extensive games
Based on a model where deviations from equilibrium play are assumed to identify irrational players who are characterized by ambiguous set-valued strategies, this paper introduces an equilibrium notion for extensive games with ambiguity averse players that yields a precise interpretation for the counterfactual reasoning usually associated with backward induction. The resulting equilibria are always Nash equilibria, but may not satisfy the conditions required for various refinements of Nash...[Show more]
|Collections||ANU Research Publications|
|Source:||Games and Economic Behavior|
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