Awareness-dependent subjective expected utility
AbstractWe develop awareness-dependent subjective expected utility by taking unawareness structures introduced in Heifetz et al. (J Econ Theory 130:78–94, 2006 ; Games Econ Behav 62:304–324, 2008 ; Unawareness, beliefs, and speculative trade. University of California, Davis, 2011a ) as primitives in the Anscombe–Aumann approach to subjective expected utility. We observe that a decision maker is unaware of an event if and only if her choices reveal that the event is “null” and the negation of the event is “null”. Moreover, we characterize “impersonal” expected utility that is behaviorally indistinguishable from awareness-dependent subject expected utility and assigns probability zero to some subsets of states that are not necessarily events. We discuss in what sense probability zero can model unawareness. Copyright Springer-Verlag 2013
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Bibliographic InfoArticle provided by Springer in its journal International Journal of Game Theory.
Volume (Year): 42 (2013)
Issue (Month): 3 (August)
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- Burkhard, Schipper, 2010. "Awareness-Dependent Subjective Expected Utility," Working Papers 10-22, University of California at Davis, Department of Economics.
- Burkhard Schipper, 2011. "Awareness-Dependent Subjective Expected Utility," Working Papers 1022, University of California, Davis, Department of Economics.
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D03 - Microeconomics - - General - - - Behavioral Economics; Underlying Principles
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
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- Schipper, Burkhard C, 2011.
30221, University Library of Munich, Germany.
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