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Zero-sum games with ambiguity

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  • Rosenberg, Dinah
  • Vieille, Nicolas

Abstract

We study whether the basic tenets of the theory of zero-sum games are still valid when players are uncertainty averse. We focus on games with one-sided information, in which the uninformed player is uncertain about the state of nature. Uncertainty aversion turns the underlying zero-sum game into a many-player, non-zero-sum game. We show that the uninformed player has a unique equilibrium payoff. We provide conditions under which there is a unique equilibrium payoff vector.

Suggested Citation

  • Rosenberg, Dinah & Vieille, Nicolas, 2019. "Zero-sum games with ambiguity," Games and Economic Behavior, Elsevier, vol. 117(C), pages 238-249.
    • Handle: RePEc:eee:gamebe:v:117:y:2019:i:c:p:238-249
    DOI: 10.1016/j.geb.2019.04.013
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    References listed on IDEAS

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