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Speculative trade under unawareness: the infinite case

Author

Listed:
  • Martin Meier

    (Institut für Höhere Studien (IHS))

  • Burkhard C. Schipper

    (University of California)

Abstract

We prove a “no-speculative-trade” theorem under unawareness for the infinite case. This generalizes the result for the finite case by Heifetz et al. (Games Econ Behav 77:100–121, 2013).

Suggested Citation

  • Martin Meier & Burkhard C. Schipper, 2014. "Speculative trade under unawareness: the infinite case," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 2(2), pages 147-160, October.
    • Handle: RePEc:spr:etbull:v:2:y:2014:i:2:d:10.1007_s40505-014-0040-x
    DOI: 10.1007/s40505-014-0040-x
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    References listed on IDEAS

    as
    1. Heifetz, Aviad & Meier, Martin & Schipper, Burkhard C., 2013. "Unawareness, beliefs, and speculative trade," Games and Economic Behavior, Elsevier, vol. 77(1), pages 100-121.
    2. Simon Grant & John Quiggin, 2013. "Inductive reasoning about unawareness," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(3), pages 717-755, November.
    3. Heifetz, Aviad & Meier, Martin & Schipper, Burkhard C., 2008. "A canonical model for interactive unawareness," Games and Economic Behavior, Elsevier, vol. 62(1), pages 304-324, January.
    4. Kim-Sau Chung & Oliver Board, 2007. "Object-Based Unawareness," Working Papers 2007-2, University of Minnesota, Department of Economics, revised 24 Aug 2007.
    5. Milgrom, Paul & Stokey, Nancy, 1982. "Information, trade and common knowledge," Journal of Economic Theory, Elsevier, vol. 26(1), pages 17-27, February.
    6. Heifetz, Aviad, 2006. "The positive foundation of the common prior assumption," Games and Economic Behavior, Elsevier, vol. 56(1), pages 105-120, July.
    7. Samet, Dov, 1999. "Bayesianism without learning," Research in Economics, Elsevier, vol. 53(2), pages 227-242, June.
    8. Feinberg, Yossi, 2000. "Characterizing Common Priors in the Form of Posteriors," Journal of Economic Theory, Elsevier, vol. 91(2), pages 127-179, April.
    9. Heifetz, Aviad & Meier, Martin & Schipper, Burkhard C., 2006. "Interactive unawareness," Journal of Economic Theory, Elsevier, vol. 130(1), pages 78-94, September.
    10. Oliver Board, 2008. "Object-Based Unawareness: Theory and Applications," Working Paper 378, Department of Economics, University of Pittsburgh, revised Mar 2009.
    11. Monderer, Dov & Samet, Dov, 1989. "Approximating common knowledge with common beliefs," Games and Economic Behavior, Elsevier, vol. 1(2), pages 170-190, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Burkhard Schipper, 2013. "Awareness-dependent subjective expected utility," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(3), pages 725-753, August.
    2. Burkhard Schipper, 2010. "Revealed Unawareness," Working Papers 303, University of California, Davis, Department of Economics.
    3. Galanis, Spyros, 2018. "Speculation under unawareness," Games and Economic Behavior, Elsevier, vol. 109(C), pages 598-615.
    4. Heifetz, Aviad & Meier, Martin & Schipper, Burkhard C., 2013. "Unawareness, beliefs, and speculative trade," Games and Economic Behavior, Elsevier, vol. 77(1), pages 100-121.
    5. Galanis Spyros & Kotronis Stelios, 2021. "Updating Awareness and Information Aggregation," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 21(2), pages 613-635, June.
    6. Schipper, Burkhard C, 2011. "Preference-Based Unawareness," MPRA Paper 30221, University Library of Munich, Germany.
    7. 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.
    8. Burkhard Schipper, 2011. "Preference-Dependent Unawareness," Working Papers 269, University of California, Davis, Department of Economics.
    9. Schipper, Burkhard C, 2010. "Revealed Unawareness," MPRA Paper 21491, University Library of Munich, Germany.
    10. Galanis, Spyros, 2007. "Unawareness of theorems," Discussion Paper Series In Economics And Econometrics 51816, Economics Division, School of Social Sciences, University of Southampton.

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    More about this item

    Keywords

    Awareness; Unawareness; Speculation; Trade; Agreement; Common prior; Common certainty;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations

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