An Ambiguous Strategic Form Game Based on Nonadditive Probabilities

Although classic game theory has achieved excellent success in economics, it is often criticized for its weakness while describing real-world conflict situations, for its basic assumptions, such as complete rationality, common knowledge, etc. are not always consistent with real person in real conflicts. This paper reviews literature of criticism to classic game theory and researches on boundedly rational game first, then introduce nonadditive probabilities into strategic form games, which can describe players´ attitude of risk-aversion in strategy selections. We also present a payoff function which can be considered as a weighed summarization of vNM utility and max- min decision criterion in strategic form games. We also show the existence of equilibrium in such games.