Inductive reasoning about unawareness
We develop a model of games with awareness that allows for differential levels of awareness. We show that, for the standard modal-logical interpretations of belief and awareness, a player cannot believe there exist propositions of which he is unaware. Nevertheless, we argue that a boundedly rational individual may regard the possibility that there exist propositions of which she is unaware as being supported by inductive reasoning, based on past experience and consideration of the limited awareness of others. In this paper, we provide a formal representation of inductive reasoning in the context of a dynamic game with differential awareness. We show that, given differential awareness over time and between players, individuals can derive inductive support for propositions expressing their own unawareness. We consider the ecological rationality of heuristics to guide decisions in problems involving differential awareness. Copyright Springer-Verlag Berlin Heidelberg 2013
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 54 (2013)
Issue (Month): 3 (November)
|Contact details of provider:|| Web page: http://link.springer.de/link/service/journals/00199/index.htm |
|Order Information:||Web: http://link.springer.de/orders.htm|
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.:
- Heifetz, Aviad & Meier, Martin & Schipper, Burkhard C, 2009.
"Dynamic Unawareness and Rationalizable Behavior,"
15058, University Library of Munich, Germany.
- Martin Meier & Burkhard C. Schipper & Aviad Heifetz, 2009. "Dynamic Unawareness and Rationalizable Behavior," Working Papers 910, University of California, Davis, Department of Economics.
- Aviad Heifetz & Martin Meier & Burkhard Schipper, 2011. "Dynamic unawareness and rationalizable behavior," Working Papers 113, University of California, Davis, Department of Economics.
- Grant, Simon & Quiggin, John, 2013.
"Bounded awareness, heuristics and the Precautionary Principle,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 93(C), pages 17-31.
- Grant, Simon & Quiggin, John, 2012. "Bounded Awareness, Heuristics and the Precautionary Principle," Risk and Sustainable Management Group Working Papers 151203, University of Queensland, School of Economics.
- Martin J Osborne & Ariel Rubinstein, 2009.
"A Course in Game Theory,"
814577000000000225, UCLA Department of Economics.
- Grant, Simon & Quiggin, John, 2006.
"Learning and Discovery,"
Risk and Sustainable Management Group Working Papers
151174, University of Queensland, School of Economics.
- Leandro Rêgo & Joseph Halpern, 2012. "Generalized solution concepts in games with possibly unaware players," International Journal of Game Theory, Springer, vol. 41(1), pages 131-155, February.
- Simon Grant & John Quiggin, 2008.
"Bounded rationality and small worlds,"
Risk & Uncertainty Working Papers
WPR08_2, Risk and Sustainable Management Group, University of Queensland.
- Grant, Simon & Quiggin, John, 2008. "Bounded Rationality and Small Worlds," Risk and Sustainable Management Group Working Papers 151187, University of Queensland, School of Economics.
- 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.
- Eddie Dekel & Barton L. Lipman & Aldo Rustichini, 1998. "Standard State-Space Models Preclude Unawareness," Econometrica, Econometric Society, vol. 66(1), pages 159-174, January.
- Gollier, Christian & Jullien, Bruno & Treich, Nicolas, 2000.
"Scientific progress and irreversibility: an economic interpretation of the 'Precautionary Principle',"
Journal of Public Economics,
Elsevier, vol. 75(2), pages 229-253, February.
- Gollier & Jullien & Treich, 2000. "Scientific progress and irreversibility : an economic interpretation of the Precautionary principle," Working Papers 156240, Institut National de la Recherche Agronomique, France.
- Spyros Galanis, 2011. "Syntactic foundations for unawareness of theorems," Theory and Decision, Springer, vol. 71(4), pages 593-614, October.
- Modica, Salvatore & Rustichini, Aldo, 1999. "Unawareness and Partitional Information Structures," Games and Economic Behavior, Elsevier, vol. 27(2), pages 265-298, May.
- Halpern, Joseph Y. & Rego, Leandro Chaves, 2008. "Interactive unawareness revisited," Games and Economic Behavior, Elsevier, vol. 62(1), pages 232-262, January.
- repec:ecl:ucdeco:09-10 is not listed on IDEAS
- Halpern, Joseph Y. & Rêgo, Leandro C., 2009. "Reasoning about knowledge of unawareness," Games and Economic Behavior, Elsevier, vol. 67(2), pages 503-525, November.
When requesting a correction, please mention this item's handle: RePEc:spr:joecth:v:54:y:2013:i:3:p:717-755. 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: (Guenther Eichhorn)or (Christopher F Baum)
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.