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Interactive unawareness

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  • 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. 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.
  2. Enriqueta Aragones & Itzhak Gilboa & Andrew Postlewaite & David Schmeidler, 2004. "Fact-Free Learning," Cowles Foundation Discussion Papers 1491, Cowles Foundation for Research in Economics, Yale University.
    • Enriqueta Aragones & Itzhak Gilboa & Andrew Postlewaite & David Schmeidler, 2003. "Fact-Free Learning," PIER Working Paper Archive 05-002, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Dec 2004.
    • Enriqueta Aragones & Itzhak Gilboa & Andrew Postlewaite & David Schmeidler, 2003. "Fact-Free Learning," PIER Working Paper Archive 03-023, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
  3. Eddie Dekel & Barton L. Lipman & Aldo Rustichini, 1998. "Standard State-Space Models Preclude Unawareness," Econometrica, Econometric Society, vol. 66(1), pages 159-174, January.
  4. Modica, Salvatore & Rustichini, Aldo, 1999. "Unawareness and Partitional Information Structures," Games and Economic Behavior, Elsevier, vol. 27(2), pages 265-298, May.
  5. Halpern, Joseph Y., 2001. "Alternative Semantics for Unawareness," Games and Economic Behavior, Elsevier, vol. 37(2), pages 321-339, November.
  6. Herbert Simon & Lindsay McSweeney, 2010. "A Behavioral Model of Rational Choice," CPI Journal, Competition Policy International, vol. 6.
  7. Sergiu Hart & Aviad Heifetz & Dov Samet, 1994. "'Knowing Whether', 'Knowing That' and the Cardinality of State Spaces," Game Theory and Information 9404002, EconWPA.
  8. Ewerhart, Christian, 2001. "Heterogeneous Awareness and the Possibility of Agreement," Sonderforschungsbereich 504 Publications 01-30, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
  9. Robert J Aumann, 1999. "Agreeing to Disagree," Levine's Working Paper Archive 512, David K. Levine.
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