Strategic Substitutes, Complements and Ambiguity: An Experimental Study
30 Pages Posted: 11 Nov 2014 Last revised: 22 Apr 2015
Date Written: April 21, 2015
We report the results from a set of experiments conducted to test the effect of ambiguity on individual behaviour in games of strategic complements and strategic substitutes. We test whether subjects' perception of ambiguity differs when faced by a local opponent as opposed to a foreign one. Interestingly, though subjects often choose an ambiguity safe strategy (not part of a Nash equilibrium), we do not find much difference in the ambiguity levels when faced by foreign subjects.
Keywords: Ambiguity; Choquet expected utility; strategic complements; strategic substitutes; Ellsberg urn
JEL Classification: C72, C91, D03, D81
Suggested Citation: Suggested Citation