[UTMD-109] On Fundamental versus Strategic Uncertainty (by Yu Awaya, Vijay Krishna)

Yu Awaya, Vijay Krishna

In global games in which one player has better information than his rival, it may be that in the unique equilibrium, the better informed player has a lower payoff than the poorly informed player. The reason is that while the better informed player faces less (or even no) uncertainty about economic fundamentals, he may face greater strategic uncertainty.