Strategic substitutes, complements and ambiguity: an experimental study

Abstract

We report the results from a set of experiments conducted to test the e§ect of ambiguity on individual behaviour in games of strategic complements and strategic substitutes. We test whether subjectsíperception of ambiguity di§ers when faced by a local opponent as opposed to a foreign one. Interestingly, though subjects often choose an ambiguity safe strategy (not part of a Nash equilibrium), we do not Önd much di§erence in the ambiguity levels when faced by foreign subjects.