- games

DOI10.3390/G12010005MaRDI QIDQ2052483zbMATH OpenOpenAlexFDO

Authors Uwe Dulleck, Löffler, Andras

Publication date 26 November 2021

Published in Games (Search for Journal in Brave)

Copyright license Creative Commons Attribution 4.0 International

Full work available at URL https://doi.org/10.3390/g12010005

zbMATH Keywords

\(\mu\)-\(\sigma\) utilityequilibriumgame theorymixed strategies

Mathematics Subject Classification ID

Utility theory for games (91A30)

Review text

Summary: Risk aversion in game theory is usually modeled using expected utility, which was criticized early on, leading to an extensive literature on generalized expected utility. In this paper we are the first to apply \(\mu\)-\(\sigma\) theory to the analysis of (static) games. \(\mu\)-\(\sigma\) theory is widely accepted in the finance literature; using it allows us to study the effect on uncertainty endogenous to the game, i.e., mixed equilibria. In particular, we look at the case of linear \(\mu\)-\(\sigma\) utility functions and determine the best response strategy. In the case of \(2 \times 2\) and \(\mathrm{N} \times \mathrm{M}\) games, we are able to characterize all mixed equilibria.

Recommendations

• The effects of risk preferences in mixed-strategy equilibria of \(2\times \)2 games
• When the players are not expectation maximizers
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• Risk averse behavior in generalized matching pennies games.
• Risk-neutral equilibria of noncooperative games

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Cited in

(11)

• -decisiveness in simple games
• Long games and \(\sigma \)-projective sets
• Games with second-order expected utility
• scientific article; zbMATH DE number 1948152 (Why is no real title available?)
• scientific article; zbMATH DE number 1956506 (Why is no real title available?)
• scientific article; zbMATH DE number 1900858 (Why is no real title available?)
• scientific article; zbMATH DE number 7340147 (Why is no real title available?)
• GAMES AND REFLECTION IN
• The variable hierarchy for the games -calculus
• \(\sigma\)-game, \(\sigma ^{+}\)-game and two-dimensional additive cellular automata
• The effects of risk preferences in mixed-strategy equilibria of \(2\times \)2 games

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