Nash equilibria with Knightian uncertainty; the case of capacities
A capacity is a function on a \(\sigma\)-algebra of sets which, like a probability function, assigns 0 to the empty set, 1 to the whole space, and respects inclusion. Unlike a probability, it is not assumed to be additive. \textit{R. Kozhan} and \textit{M. Zarichnyi} [Econ. Theory 35, No. 2, 321--331 (2008; Zbl 1152.91386)], introduced an approach to game theory concepts when Knightian uncertainty is modelled using capacities, and defined tensor products to combine the capacities on the strategy sets of the players to obtain a capacity on the product of those strategy sets. They then defined Nash equilibria in a way analogous to that for (additive) probabilities. The present authors show how the tensor product for a 2 by 2 game can be calculated, and then in a specific example calculate the expected utility function and the Nash equilibria in capacities.
- On Cournot-Nash equilibria with exogenous uncertainty
- A no-trade theorem under Knightian uncertainty with general preferences
- Equilibrium under uncertainty with fuzzy payoff
- Non-additive beliefs: From decision to game theory
- Trembles in extensive games with ambiguity averse players
- Equilibria for games in idempotent measures
- Duality and General Equilibrium Theory Under Knightian Uncertainty
- Non-additive anonymous games
- Games in possibility capacities with payoff expressed by fuzzy integral
- Strategic games beyond expected utility
- Nash equilibria for games in capacities
This page was built for publication: Nash equilibria with Knightian uncertainty; the case of capacities
Report a bug (only for logged in users!)Click here to report a bug for this page (MaRDI item Q943344)
