Journal of Public Economic Theory · 2016 · 99 citations · 19 references
Social SciencesEconomicsSocial PsychologyBehavioral EconomicsExperimental EconomicsGame TheoryAsymmetric InformationBehavioral Decision-makingBehavioral Game TheoryDecision Under AmbiguityNash EquilibriumNoncooperative Game TheoryAmbiguity In Game TheoryAmbiguity In GamesDecision Analysis Under AmbiguityDecision-making Under Social UncertaintyExperimental Public Goods GamesGame-theoretic Decision ModelsNash Equilibrium SelectionPublic Goods Under Uncertainty
Abstract This paper studies the impact of ambiguity in the best‐shot and weakest‐link models of public good provision. The models are first analyzed theoretically. Then, we conduct experiments to study how ambiguity affects behavior in these games. We test whether subjects' perception of ambiguity differs between a local opponent and a foreign one. We find that an ambiguity‐safe strategy is often chosen by subjects. This is compatible with the hypothesis that ambiguity aversion influences behavior in games. Subjects tend to choose contributions above (respectively, below) the Nash equilibrium in the best‐shot (respectively, weakest‐link) model.
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Risk Aversion and Incentive Effects
Charles A. Holt, Susan K. Laury · American Economic Review · 2002 · 5.7K citations
Business, Economics, Psychology +17
Subjective Probability and Expected Utility without Additivity
David Schmeidler · Econometrica · 1989 · 2.3K citations
Business, Economics, Mathematics +16