Ambiguity and Social Interaction

Arbeitspapier

We examine the impact of ambiguity on economic behaviour. We present a relatively non-technical account of ambiguity and show how it may be applied in economics. Optimistic and pessimistic responses to ambiguity are formally modelled. We show that pessimism has the effect of increasing (decreasing) equilibrium prices under Cournot (Bertrand) competition. We also examine the effects of ambiguity on peace processes. It is shown that ambiguity can act to select equilibria in coordination games with multiple equilibria. Some comparative statics results are derived for the impact of ambiguity in games with strategic complements.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Bonn Econ Discussion Papers ; No. 23/2003

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Criteria for Decision-Making under Risk and Uncertainty ; Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection ; Noncooperative Games ; Externalities
• Thema: Ambiguity ; Optimism ; Oligopoly ; Peace processes ; Choquet expected utility ; Entscheidung bei Unsicherheit ; Soziale Beziehungen ; Nichtkooperatives Spiel ; Erwartungsnutzen ; Oligopol ; Friedenssicherung ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Eichberger, Jürgen ; Kelsey, David H. ; Schipper, Burkhard C.
• Ereignis: Veröffentlichung
• (wer): University of Bonn, Bonn Graduate School of Economics (BGSE)
• (wo): Bonn
• (wann): 2003

Weitere Informationen

• Handle: http://hdl.handle.net/10419/22871
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ