Strategic ambiguity and decision-making: an experimental study

Article

Abstract

We conducted a set of experiments to compare the effect of ambiguity in single-person decisions and games. Our results suggest that ambiguity has a bigger impact in games than in ball and urn problems. We find that ambiguity has the opposite effect in games of strategic substitutes and complements. This confirms a theoretical prediction made by Eichberger and Kelsey (J Econ Theory 106:436–466, 2002). In addition, we note that subjects’ ambiguity attitudes appear to be context dependent: ambiguity loving in single-person decisions and ambiguity averse in games. This is consistent with the findings of Kelsey and le Roux (Theory Decis 79:667–688, 2015).

Keywords

Ambiguity Choquet expected utility Strategic complements Strategic substitutes Ellsberg urn 

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Copyright information

© Springer Science+Business Media, LLC 2017

Authors and Affiliations

  1. 1.University of Exeter Business SchoolExeterUK
  2. 2.Department of EconomicsOxford Brookes UniversityOxfordUK

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