This paper explores the consequences of assuming that agents may be unaware of certain outcomes in the state space. One way to construct such a setting is from what we call awareness types. When agents possess limited awareness of the state space, information may be delusive, but agents can still not commonly believe to have different posteriors. The paper also discusses the properties of knowledge under limited awareness. E.g., it is shown that an ignorant agent\ is aware of his ignorance if and only if he knows that he is ignorant. When the state space is sufficiently rich, state awareness satisfies plausibility, AU-introspection, and KU-introspection.
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Paper provided by Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim in its series Sonderforschungsbereich 504 Publications with number
01-30.
Length: 30 pages Date of creation: 12 May 2001 Date of revision: Handle: RePEc:xrs:sfbmaa:01-30
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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.
[Downloadable!]
Other versions:
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!]