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Constitutional Constraints Under Ambiguity: A Game-Theoretic Approach

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Author Info
MARCELLO BASILI () (DEPFTD, University of Siena, Italy)
FULVIO FONTINI (Department of Economics, University of Padua, Italy)

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Abstract

In the paper a game between private and public individuals is set in order to study under which conditions the former would like to limit ex-ante the choices of the latter. Ambiguity, as distinguished from risk, is explicitly introduced by means of capacities and Choquet Expected Utility. It is shown that constitutional constraints are necessary to prevent private individuals from being exploited by public individuals whenever citizens feel a too high level of ambiguity.

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Publisher Info
Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Game Theory Review.

Volume (Year): 09 (2007)
Issue (Month): 01 ()
Pages: 59-66
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Handle: RePEc:wsi:igtrxx:v:09:y:2007:i:01:p:59-66

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Related research
Keywords: Games with ambiguity; Constitutional constraints; exploitation; choquet expected utility;

Find related papers by JEL classification:
B4 - Schools of Economic Thought and Methodology - - Economic Methodology
C0 - Mathematical and Quantitative Methods - - General
C6 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming
C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
D5 - Microeconomics - - General Equilibrium and Disequilibrium
D7 - Microeconomics - - Analysis of Collective Decision-Making
M2 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics

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