This paper provides a set-theoretic model of knowledge and unawareness. A new property called Awareness Leads to Knowledge shows that unawareness of theorems not only constrains an agent\\\'s knowledge, but also, can impair his reasoning about what other agents know. For example, in contrast to Li (2006), Heifetz et al. (2006a) and the standard model of knowledge, it is possible that two agents disagree on whether another agent knows a particular event. The model follows Aumann (1976) in defining common knowledge and characterizing it in terms of a self-evident event, but departs in showing that no-trade theorems do not hold.
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Aviad Heifetz & Martin Meier & Burkhard C. Schipper, 2005.
"Interactive Unawareness,"
Discussion Papers
52, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
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HEIFETZ, Aviad & MEIER, Martin & SCHIPPER, Burkhard C., 2004.
"Interactive unawareness,"
CORE Discussion Papers
2004059, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
[Downloadable!]
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.
[Downloadable!]
Other versions:
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.
[Downloadable!]
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.
[Downloadable!]
Kim-Sau Chung & Oliver Board, 2007.
"Object-Based Unawareness,"
Working Papers
2007-2, University of Minnesota, Department of Economics, revised 24 Aug 2007.
[Downloadable!]
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Oliver Board & Kim-Sau Chung, 2006.
"Object-Based Unawareness,"
Working Papers
245, University of Pittsburgh, Department of Economics, revised Jan 2006.
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