Ambiguity in psychological games can reshape strategic equilibria dramatically.
Psychological games can involve players with uncertain beliefs, leading to ambiguous strategies. This study explores how ambiguity affects equilibrium in these games. The researchers introduce a new concept of equilibrium that considers ambiguous beliefs and show that even a small amount of ambiguity can change game outcomes significantly. They also find that ambiguous trembles can influence equilibrium selection. Overall, the study sheds light on how uncertainty impacts decision-making in psychological games.