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Interactive Knowledge with Unawareness

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  • Jing Li

    ()
    (Department of Economics, University of Pennsylvania)

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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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File URL: http://economics.sas.upenn.edu/system/files/working-papers/08-023.pdf
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Bibliographic Info

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
Date of revision:
Handle: RePEc:pen:papers:08-023

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Keywords: unawareness; state space models; interactive knowledge; common knowledge;

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Cited by:
  1. Burkhard Schipper, 2014. "Unawareness - A Gentle Introduction to both the Literature and the Special Issue," Working Papers, University of California, Davis, Department of Economics 145, University of California, Davis, Department of Economics.

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