Article ID Journal Published Year Pages File Type
5072811 Games and Economic Behavior 2007 8 Pages PDF
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.

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Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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NoteThe effects of risk preferences in mixed-strategy equilibria of 2×2 games
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