Strategic ambiguity and decision-making: An experimental study

We conducted a set of experiments to compare the e¤ect of ambiguity in single person decisions and games. Our results suggest that ambiguity has a bigger impact in games than in ball and urn problems. We …nd that ambiguity has the opposite e¤ect in games of strategic substitutes and complements. This con…rms a theoretical prediction made by Eichberger and Kelsey (2002). The experiments also test whether subjects’perception of ambiguity di¤ers when faced by a local opponent as opposed to a foreign one. Our results show that there is little evidence of more in‡uence of ambiguity on behaviour when faced by foreign subjects