# An experimental study on the effect of ambiguity in a coordination game

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## Abstract

We report an experimental test of the influence of ambiguity on behaviour in a coordination game. We study the behaviour of subjects in the presence of ambiguity and attempt to determine whether they prefer to choose an ambiguity-safe option. We find that this strategy, which is not played in either Nash equilibrium or iterated dominance equilibrium, is indeed chosen quite frequently. This provides evidence that ambiguity-aversion influences behaviour in games. While the behaviour of the Row Player is consistent with randomising between her strategies, the Column Player shows a marked preference for avoiding ambiguity and choosing his ambiguity-safe strategy.

## Keywords

Ambiguity Choquet expected utility Coordination game Ellsberg urn Experimental economics## Notes

### Acknowledgments

We would like to thank Dieter Balkenborg, Adam Dominiak, Peter Dursch, Jürgen Eichberger, Todd Kaplan, Joshua Teitelbaum, Horst Zank, participants in seminars in Bristol, Exeter, Manchester and RUD Paris and some anonymous referees for their comments and suggestions. We would like to thank Tim Miller for programming our Ellsberg Urn simulator.

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