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Interactive Knowledge with Unawareness

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Author Info
Jing Li () (Department of Economics, University of Pennsylvania)
Abstract

This paper extends Li (2008b) to the multi-agent environment, where players reason about each other’s awareness as well as knowledge, subject to their own awareness constraints. I characterize the interactive knowledge hierarchies under unawareness, which significantly differ from those in the standard information partition model by allowing for false interactive knowledge. Aumann’s classic characterization of common knowledge does not immediately apply in this environment, even if there is “common awareness” of the event involved. An alternative characterization of common knowledge is provided.

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Paper provided by Penn Institute for Economic Research, Department of Economics, University of Pennsylvania in its series PIER Working Paper Archive with number 08-023.

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Length: 21 pages
Date of creation: 01 Jun 2008
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Handle: RePEc:pen:papers:08-023

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Related research
Keywords: unawareness state space models interactive knowledge common knowledge

Find related papers by JEL classification:
C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information

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This page was last updated on 2008-10-28.

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