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.
|Number of pages||17|
|Journal||Journal of Economic Theory|
|State||Published - Sep 2006|
Bibliographical noteFunding Information:
∗Corresponding author. E-mail addresses: email@example.com (A. Heifetz), firstname.lastname@example.org (M. Meier), email@example.com (B.C. Schipper). 1 Financial support during the preparation of earlier drafts from the European Union via a Marie-Curie Individual Fellowship (HPMF-2002-02073) is gratefully acknowledged. 2Financial support by the DFG and DAAD is gratefully acknowledged.
- Bounded perception
- Interactive epistemology
- Speculative trade