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On dynamic consistency in ambiguous games

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  • Ellis, Andrew

Abstract

I consider static, incomplete information games where players may not be ambiguity neutral. Every player is one of a finite set of types, and each knows her own type but not that of the other players. Ex ante, players differ only in their taste for outcomes. If every player is dynamically consistent with respect to her own information structure and respects Consequentialism, then players act as if expected utility for uncertainty about types.

Suggested Citation

  • Ellis, Andrew, 2018. "On dynamic consistency in ambiguous games," LSE Research Online Documents on Economics 89387, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:89387
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    File URL: http://eprints.lse.ac.uk/89387/
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    References listed on IDEAS

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    Cited by:

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    2. Beggs, Alan, 2021. "Games with second-order expected utility," Games and Economic Behavior, Elsevier, vol. 130(C), pages 569-590.
    3. Pahlke, Marieke, 2022. "Dynamic consistency in incomplete information games with multiple priors," Games and Economic Behavior, Elsevier, vol. 133(C), pages 85-108.
    4. Galanis, S. & Ioannou, C. & Kotronis, S., 2019. "Information Aggregation Under Ambiguity: Theory and Experimental Evidence," Working Papers 20/05, Department of Economics, City University London.
    5. Eran Hanany & Peter Klibanoff & Sujoy Mukerji, 2020. "Incomplete Information Games with Ambiguity Averse Players," American Economic Journal: Microeconomics, American Economic Association, vol. 12(2), pages 135-187, May.
    6. Pahlke, Marieke, 2018. "Dynamic Consistency in Incomplete Information Games with Multiple Priors," Center for Mathematical Economics Working Papers 599, Center for Mathematical Economics, Bielefeld University.
    7. Ghosh, Gagan & Liu, Heng, 2021. "Sequential auctions with ambiguity," Journal of Economic Theory, Elsevier, vol. 197(C).
    8. Li, Chen & Turmunkh, Uyanga & Wakker, Peter P., 2020. "Social and strategic ambiguity versus betrayal aversion," Games and Economic Behavior, Elsevier, vol. 123(C), pages 272-287.

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    More about this item

    Keywords

    Ambiguity; incomplete information; dynamic consistency; strategic interaction;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics

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