"Reverse Bayesianism": A Choice-Based Theory of Growing Awareness
This article introduces a new approach to modeling the expanding universe of decision makers in the wake of growing awareness, and invokes the axiomatic approach to model the evolution of decision makers' beliefs as awareness grows. The expanding universe is accompanied by extension of the set of acts, the preference relations over which are linked by a new axiom, invariant risk preferences, asserting that the ranking of lotteries is independent of the set of acts under consideration. The main results are representation theorems and rules for updating beliefs over expanding state spaces and events that have the flavor of "reverse Bayesianism."
Volume (Year): 103 (2013)
Issue (Month): 7 (December)
|Contact details of provider:|| Web page: https://www.aeaweb.org/aer/|
More information through EDIRC
|Order Information:||Web: https://www.aeaweb.org/subscribe.html|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ehud Lehrer & Roee Teper, 2014. "Extension Rules or What Would the Sage Do?," American Economic Journal: Microeconomics, American Economic Association, vol. 6(1), pages 5-22, February.
- Grant, Simon & Quiggin, John, 2009.
"Inductive Reasoning About Unawareness,"
Risk and Sustainable Management Group Working Papers
151188, University of Queensland, School of Economics.
- Simon Grant & John Quiggin, 2009. "Inductive reasoning about unawareness," Risk & Uncertainty Working Papers WPR09_1, Risk and Sustainable Management Group, University of Queensland.
- Grant, Simon & Quiggin, John, 2012. "Inductive Reasoning About Unawareness," Risk and Sustainable Management Group Working Papers 151202, University of Queensland, School of Economics.
- Eddie Dekel & Barton L. Lipman & Aldo Rustichini, 1998. "Standard State-Space Models Preclude Unawareness," Econometrica, Econometric Society, vol. 66(1), pages 159-174, January.
- Modica, Salvatore & Rustichini, Aldo, 1999. "Unawareness and Partitional Information Structures," Games and Economic Behavior, Elsevier, vol. 27(2), pages 265-298, May.
- Brian Hill, 2010. "Awareness Dynamics," Post-Print hal-00521801, HAL.
- Gilboa,Itzhak, 2009.
"Theory of Decision under Uncertainty,"
Cambridge University Press, number 9780521517324, December.
- Burkhard Schipper, 2013.
"Awareness-dependent subjective expected utility,"
International Journal of Game Theory,
Springer;Game Theory Society, vol. 42(3), pages 725-753, August.
- HEIFETZ, Aviad & MEIER, Martin & SCHIPPER, Burkhard C., 2004.
CORE Discussion Papers
2004059, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Heifetz, Aviad & Meier, Martin & Schipper, Burkhard C., 2005. "Interactive Unawareness," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 52, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Joseph Y. Halpern, 2000.
"Alternative Semantics for Unawareness,"
Game Theory and Information
- Li, Jing, 2009. "Information structures with unawareness," Journal of Economic Theory, Elsevier, vol. 144(3), pages 977-993, May.
- Halpern, Joseph Y. & Rego, Leandro Chaves, 2008. "Interactive unawareness revisited," Games and Economic Behavior, Elsevier, vol. 62(1), pages 232-262, January.
When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:103:y:2013:i:7:p:2790-2810. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros)or (Michael P. Albert)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.