Abstract
We consider the effects of risk preferences in mixed-strategy equilibria of 2 * 2 games, provided such equilibria exist. We identify sufficient conditions under which the expected payoff in the mixed equilibrium increases or decreases with the degree of risk aversion. We find that (at least moderate degrees of) risk aversion will frequently be beneficial in mixed equilibria.
| Original language | English |
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| Place of Publication | Egham |
| Publication status | Published - 19 Sept 2006 |
Keywords
- risk preferences
- mixed-strategy equilibria