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Decision-theoretic approaches to non-knowledge in economics

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  • Ekaterina Svetlova

    (Universit\"at Konstanz, Karlshochschule International University)

  • Henk van Elst

    (Karlshochschule International University)

Abstract

We review two strands of conceptual approaches to the formal representation of a decision maker's non-knowledge at the initial stage of a static one-person, one-shot decision problem in economic theory. One focuses on representations of non-knowledge in terms of probability measures over sets of mutually exclusive and exhaustive consequence-relevant states of Nature, the other deals with unawareness of potentially important events by means of sets of states that are less complete than the full set of consequence-relevant states of Nature. We supplement our review with a brief discussion of unresolved matters in both approaches.

Suggested Citation

  • Ekaterina Svetlova & Henk van Elst, 2014. "Decision-theoretic approaches to non-knowledge in economics," Papers 1407.0787, arXiv.org.
    • Handle: RePEc:arx:papers:1407.0787
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    References listed on IDEAS

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    Cited by:

    1. Yasuo Sasaki, 2016. "An Equivalence Result on the Reduction of Games with Unawareness," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 18(03), pages 1-27, September.

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