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Universal type structures with unawareness

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  • Heinsalu, Sander

Abstract

Infinite hierarchies of awareness and beliefs arise in games with unawareness, similarly to belief hierarchies in standard games. A natural question is whether each hierarchy describes the playerʼs awareness of the hierarchies of other players and beliefs over these, or whether the reasoning can continue indefinitely. This paper constructs the universal type structure with unawareness where each type has an awareness level and a belief over types. Countable hierarchies are therefore sufficient to describe all uncertainty in games with unawareness.

Suggested Citation

  • Heinsalu, Sander, 2014. "Universal type structures with unawareness," Games and Economic Behavior, Elsevier, vol. 83(C), pages 255-266.
  • Handle: RePEc:eee:gamebe:v:83:y:2014:i:c:p:255-266 DOI: 10.1016/j.geb.2013.11.012
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    References listed on IDEAS

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    Cited by:

    1. Ganguli, Jayant & Heifetz, Aviad & Lee, Byung Soo, 2016. "Universal interactive preferences," Journal of Economic Theory, Elsevier, vol. 162(C), pages 237-260.
    2. Heifetz, Aviad & Meier, Martin & Schipper, Burkhard C., 2013. "Unawareness, beliefs, and speculative trade," Games and Economic Behavior, Elsevier, vol. 77(1), pages 100-121.
    3. Martin Meier & Burkhard Schipper, 2014. "Bayesian games with unawareness and unawareness perfection," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 56(2), pages 219-249, June.
    4. Karni, Edi & Vierø, Marie-Louise, 2017. "Awareness of unawareness: A theory of decision making in the face of ignorance," Journal of Economic Theory, Elsevier, vol. 168(C), pages 301-328.
    5. repec:esx:essedp:722 is not listed on IDEAS
    6. repec:eee:matsoc:v:87:y:2017:i:c:p:11-21 is not listed on IDEAS
    7. Liu, Zhen, 2016. "Games with incomplete information when players are partially aware of others’ signals," Journal of Mathematical Economics, Elsevier, vol. 65(C), pages 58-70.
    8. Willemien Kets, 2012. "Bounded Reasoning and Higher-Order Uncertainty," Discussion Papers 1547, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    9. Aviad Heifetz & Willemien Kets, 2012. "All Types Naive and Canny," Discussion Papers 1550, Northwestern University, Center for Mathematical Studies in Economics and Management Science.

    More about this item

    Keywords

    Unawareness; Universal type structure; Awareness; Belief; Uncertainty;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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