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Unforeseen Evidence

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  • Evan Piermont

Abstract

I propose a normative updating rule, extended Bayesianism, for the incorporation of probabilistic information arising from the process of becoming more aware. Extended Bayesianism generalizes standard Bayesian updating to allow the posterior to reside on richer probability space than the prior. I then provide an observable criterion on prior and posterior beliefs such that they were consistent with extended Bayesianism.

Suggested Citation

  • Evan Piermont, 2019. "Unforeseen Evidence," Papers 1907.07019, arXiv.org, revised Jan 2021.
    • Handle: RePEc:arx:papers:1907.07019
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    References listed on IDEAS

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    1. Simone Galperti, 2019. "Persuasion: The Art of Changing Worldviews," American Economic Review, American Economic Association, vol. 109(3), pages 996-1031, March.
    2. Evan Piermont & Peio Zuazo-Garin, 2020. "Failures of Contingent Thinking," Papers 2007.07703, arXiv.org, revised Jul 2023.
    3. Pietro Ortoleva, 2012. "Modeling the Change of Paradigm: Non-Bayesian Reactions to Unexpected News," American Economic Review, American Economic Association, vol. 102(6), pages 2410-2436, October.
    4. Lawrence Blume & Adam Brandenburger & Eddie Dekel, 2014. "Lexicographic Probabilities and Choice Under Uncertainty," World Scientific Book Chapters, in: The Language of Game Theory Putting Epistemics into the Mathematics of Games, chapter 6, pages 137-160, World Scientific Publishing Co. Pte. Ltd..
    5. Karni Edi & Valenzuela-Stookey Quitzé & Vierø Marie-Louise, 2021. "Reverse Bayesianism: A Generalization," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 21(2), pages 557-569, June.
    6. Halpern, Joseph Y., 2010. "Lexicographic probability, conditional probability, and nonstandard probability," Games and Economic Behavior, Elsevier, vol. 68(1), pages 155-179, January.
    7. Karni, Edi & VierÃÿ, Marie-Louise, 2014. "Awareness of Unawareness: A Theory of Decision Making in the Face of Ignorance," Queen's Economics Department Working Papers 274647, Queen's University - Department of Economics.
    8. 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.
    9. Halpern, Joseph Y. & Rêgo, Leandro C., 2009. "Reasoning about knowledge of unawareness," Games and Economic Behavior, Elsevier, vol. 67(2), pages 503-525, November.
    10. Modica, Salvatore & Rustichini, Aldo, 1999. "Unawareness and Partitional Information Structures," Games and Economic Behavior, Elsevier, vol. 27(2), pages 265-298, May.
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    Cited by:

    1. Araujo, Felipe A. & Piermont, Evan, 2023. "Unawareness and risk taking: The role of context," Journal of Economic Behavior & Organization, Elsevier, vol. 208(C), pages 61-79.

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    More about this item

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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