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Interactive unawareness

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Author Info

  • HEIFETZ, Aviad
  • MEIER, Martin
  • SCHIPPER, Burkhard C.

Abstract

The standard state-spaces of asymmetric information preclude non-trivial forms of unawareness (Dekel, Lipman and Rustichini, 1998). We introduce a generalized state-space model that allows for non-trivial unawareness among several individuals, and which satisfies strong properties of knowledge as well as all the desiderata on unawareness proposed this far in the literature.

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Bibliographic Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2004059.

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Date of creation: 00 Sep 2004
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Handle: RePEc:cor:louvco:2004059

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Related research

Keywords: unawareness; awareness; knowledge; interactive epistemology; speculative trade; bounded perception;

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References

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  1. Modica, Salvatore & Rustichini, Aldo, 1999. "Unawareness and Partitional Information Structures," Games and Economic Behavior, Elsevier, vol. 27(2), pages 265-298, May.
  2. Eddie Dekel & Barton L. Lipman & Aldo Rustichini, 1998. "Standard State-Space Models Preclude Unawareness," Econometrica, Econometric Society, vol. 66(1), pages 159-174, January.
  3. Paul Milgrom & Nancy L.Stokey, 1979. "Information, Trade, and Common Knowledge," Discussion Papers 377R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  4. Herbert Simon & Lindsay McSweeney, 2010. "A Behavioral Model of Rational Choice," CPI Journal, Competition Policy International, vol. 6.
  5. Joseph Y. Halpern, 2000. "Alternative Semantics for Unawareness," Game Theory and Information 0004010, EconWPA.
  6. Enriqueta Aragones & Itzhak Gilboa & Andrew Postlewaite & David Schmeidler, 2005. "Fact-Free Learning," American Economic Review, American Economic Association, vol. 95(5), pages 1355-1368, December.
  7. Ewerhart, Christian, 2001. "Heterogeneous Awareness and the Possibility of Agreement," Sonderforschungsbereich 504 Publications 01-30, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim.
  8. Hart, Sergiu & Heifetz, Aviad & Samet, Dov, 1996. ""Knowing Whether," "Knowing That," and The Cardinality of State Spaces," Journal of Economic Theory, Elsevier, vol. 70(1), pages 249-256, July.
  9. Robert J Aumann, 1999. "Agreeing to Disagree," Levine's Working Paper Archive 512, David K. Levine.
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