Extensive form games with uncertainty averse players

Nash equilibrium presumes that the beliefs of a player are represented by a probability measure. Motivated by the Ellsberg Paradox and relevant experi mental findings demonstrating that this representation of beliefs may be un realistic, this paper generalizes Nash equilibrium in finite extensive form games to allow for preferences conforming to the multiple priors model dev eloped by Gilboa and Schmeidler [Journal of Mathematical Economics, 18 (198 9), 141-153]. The implications of this generalization for strategy choices and welfare are studied. Journal of Economic Literature Classification Numb ers: C72. D81. (C) 1999 Academic Press.