A Note on Kuhn’s Theorem with Ambiguity Averse Players

Aryal, Gaurab and Stauber, Ronald (2014): A Note on Kuhn’s Theorem with Ambiguity Averse Players.

Abstract

Kuhn’s Theorem shows that extensive games with perfect recall can equivalently be analyzed using mixed or behavioral strategies, as long as players are expected utility maximizers. This note constructs an example that illustrates the limits of Kuhn’s Theorem in an environment with ambiguity averse players who use a maxmin decision rule and full Bayesian updating.

• Item Type: MPRA Paper
• Language: English
• Keywords: Extensive games; Ambiguity; Maxmin; Dynamic consistency
• Subjects: C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D81 - Criteria for Decision-Making under Risk and Uncertainty

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