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Object-based unawareness: Axioms

Author

Listed:
  • Oliver J. Board

    (Paul | Weiss, USA)

  • Kim-Sau Chung

    (Department of Economics, Hong Kong Baptist University, China)

Abstract

This paper provides foundations for a model of unawareness, called object-based unawareness (OBU) structures, that can be used to distinguish between what an agent is unaware of and what she simply does not know. At an informal level, this distinction plays a key role in a number of papers such as Tirole (2009) and Chung & Fortnow (2016). In this paper, we give the model-theoretic description of OBU structures by showing how they assign truth conditions to every sentence of the formal language used. We then prove a model-theoretic sound and completeness theorem, which characterizes OBU structures in terms of a system of axioms. We then verify that agents in OBU structures do not violate any of the introspection axioms that are generally considered to be necessary conditions for a plausible notion of unawareness. Applications are provided in our companion paper.

Suggested Citation

  • Oliver J. Board & Kim-Sau Chung, 2021. "Object-based unawareness: Axioms," The Journal of Mechanism and Institution Design, Society for the Promotion of Mechanism and Institution Design, University of York, vol. 6(1), pages 1-36, December.
    • Handle: RePEc:jmi:articl:jmi-v6i1a1
    DOI: 10.22574/jmid.2021.12.001
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    References listed on IDEAS

    as
    1. Jean Tirole, 2009. "Cognition and Incomplete Contracts," American Economic Review, American Economic Association, vol. 99(1), pages 265-294, March.
    2. Heifetz, Aviad & Meier, Martin & Schipper, Burkhard C., 2006. "Interactive unawareness," Journal of Economic Theory, Elsevier, vol. 130(1), pages 78-94, September.
    3. Modica, Salvatore & Rustichini, Aldo, 1999. "Unawareness and Partitional Information Structures," Games and Economic Behavior, Elsevier, vol. 27(2), pages 265-298, May.
    4. Halpern, Joseph Y., 2001. "Alternative Semantics for Unawareness," Games and Economic Behavior, Elsevier, vol. 37(2), pages 321-339, November.
    5. Feinberg, Yossi, 2004. "Subjective Reasoning--Games with Unawareness," Research Papers 1875, Stanford University, Graduate School of Business.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Oliver J. Board & Kim-Sau Chung, 2022. "Object-based unawareness: Theory and applications," The Journal of Mechanism and Institution Design, Society for the Promotion of Mechanism and Institution Design, University of York, vol. 7(1), pages 1-43, December.
    2. Gaia Belardinelli & Burkhard C. Schipper, 2023. "Implicit Knowledge in Unawareness Structures," Working Papers 360, University of California, Davis, Department of Economics.
    3. Burkhard C. Schipper, 2024. "Predicting the Unpredictable under Subjective Expected Utility," Papers 2403.01421, arXiv.org.

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    More about this item

    Keywords

    Awareness; object-based unawareness; modal logic.;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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