Interactive unawareness |
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| Authors: | Aviad Heifetz Martin Meier Burkhard C Schipper |
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| Institution: | aThe Economics and Management Department, The Open University of Israel, Israel;bInstituto de Análisis Económico - CSIC, Campus Universitat Autònoma de Barcelona;cDepartment of Economics, University of Bonn |
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| Abstract: | The standard state-spaces of asymmetric information preclude non-trivial forms of unawareness (Modica and Rustichini (Theory Decision 37 (1994) 107–124); Dekel, Lipman and Rustichini (Econometrica 66 (1998) 159–173)). We introduce a generalized state-space model that allows for non-trivial unawareness among several individuals, and which satisfies strong properties of knowledge as well as all the desiderata on unawareness proposed this far in the literature. |
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| Keywords: | Unawareness Awareness Knowledge Interactive epistemology Speculative trade Bounded perception |
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