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SSRN Electronic Journal
Article . 2017 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2017
Data sources: EconStor
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Ambiguity and the Centipede Game: Strategic Uncertainty in Multi-Stage Games

Authors: Eichberger, Jürgen; Grant, Simon; Kelsey, David;

Ambiguity and the Centipede Game: Strategic Uncertainty in Multi-Stage Games

Abstract

We propose a solution concept for a class of extensive form games with ambiguity. Specifically we consider multi-stage games. Players have CEU preferences. The associated ambiguous beliefs are revised by Generalized Bayesian Updating. We assume individuals take account of possible changes in their preferences by using consistent planning. We show that if there is ambiguity in the centipede game it is possible to sustain 'cooperation' for many periods as part of a consistent-planning equilibrium under ambiguity. In a non-cooperative bargaining game we show that ambiguity may be a cause of delay in bargaining.

Country
Germany
Keywords

ddc:330, centipede game, consistent planning, multi-stage game, 330 Economics, optimism, D81, dynamic consistency, ddc-330, neo-additive capacity

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    popularity
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    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
6
Average
Average
Top 10%
Green
bronze