2,383 research outputs found
Unawareness, Beliefs and Games
We define a generalized state-space model with interactive unawareness and probabilistic beliefs. Such models are desirable for many potential applications of asymmetric unawareness. We develop Bayesian games with unawareness, define equilibrium, and prove existence. We show how equilibria are extended naturally from lower to higher awareness levels and restricted from higher to lower awareness levels. We use our unawareness belief structure to show that the common prior assumption is too weak to rule out speculative trade in all states. Yet, we prove a generalized “No-trade” theorem according to which there can not be common certainty of strict preference to trade. Moreover, we show a generalization of the “No-agreeing-to-disagree” theorem
Unawareness, Beliefs and Speculative Trade
We define a generalized state-space model with interactive unawareness and probabilistic beliefs. Such models are desirable for potential applications of asymmetric unawareness. We compare unawareness with probability zero belief. Applying our unawareness belief structures, we show that the common prior assumption is too weak to rule out speculative trade in all states. Yet, we prove a generalized ""No-trade"" theorem according to which there can not be common certainty of strict preference to trade. Moreover, we show a generalization of the ""No-agreeing-to-disagree"" theorem.unawareness, awareness, zero probability, type-space, common prior, agreement, speculative trade, interactive epistemology
Unawareness, Beliefs, and Speculative Trade
We define a generalized state-space model with interactive unawareness and probabilistic beliefs. Such models are desirable for potential applications of asymmetric unawareness. Applying our unawareness belief structures, we show that the common prior assumption is too weak to rule out speculative trade in all states. Yet, we prove a generalized "No-speculative-trade" theorem according to which there can not be common certainty of strict preference to trade. Moreover, we prove a generalization of the "No-agreeing-to-disagree" theorem. Finally, we show the existence of a universal unawareness belief type space.Unawareness, awareness, common prior, agreement, speculative trade, universal type-space, interactive epistemology, inattention
Unawareness, Beliefs and Games
We define a generalized state-space model with interactive unawareness and probabilistic beliefs. Such models are desirable for many potential applications of asymmetric unawareness. We develop Bayesian games with unawareness, define equilibrium, and prove existence. We show how equilibria are extended naturally from lower to higher awareness levels and restricted from higher to lower awareness levels. We use our unawareness belief structure to show that the common prior assumption is too weak to rule out speculative trade in all states. Yet, we prove a generalized “No-trade†theorem according to which there can not be common certainty of strict preference to trade. Moreover, we show a generalization of the “No-agreeing-to-disagree†theorem.unawareness; awareness; type-space; Bayesian games; incomplete information; equilibrium; common prior; agreement; speculative trade; interactive epistemology
Unawareness, Beliefs and Games
We define a generalized state-space model with interactive unawareness and probabilistic beliefs. Such models are desirable for many potential applications of asymmetric unawareness. We develop Bayesian games with unawareness, define equilibrium, and prove existence. We show how equilibria are extended naturally from lower to higher awareness levels and restricted from higher to lower awareness levels. We use our unawareness belief structure to show that the common prior assumption is too weak to rule out speculative trade in all states. Yet, we prove a generalized ``No-trade'' theorem according to which there can not be common certainty of strict preference to trade. Moreover, we show a generalization of the ``No-agreeing-to-disagree'' theorem.unawareness, awareness, type-space, Bayesian games, incomplete information, equilibrium, common prior, agreement, speculative trade, interactive epistemology
Speculative Trade under Unawareness: The Infinite Case
We generalize the ``No-speculative-trade" theorem for finite unawareness belief structures in Heifetz, Meier, and Schipper (2013) to the infinite case.Awareness, unawareness, speculation, trade, agreement, common prior, common certainty
Speculative Trade under Unawareness: The Infinite Case
We generalize the "No-trade" theorem for finite unawareness belief structures in Heifetz, Meier, and Schipper (2009) to the infinite case.Awareness; unawareness; speculation; trade; agreement; common prior; common certainty
Information Structures with Unawareness
I construct a state space model with unawareness following Aumann (1976). Dekel, Lipman and Rustichini (1998a) show that standard state space models are incapable of representing unawareness. The model circumvents the impossibility result by endowing the agent with a subjective state space that differs from the full state space when he has the unawareness problem. Information is modeled as a pair, consisting of both factual information and awareness information. The model preserves the central properties of the standard information partition model.unawareness, information, information partition, state space models
Extensive Games with Possibly Unaware Players
Standard game theory assumes that the structure of the game is common
knowledge among players. We relax this assumption by considering extensive
games where agents may be unaware of the complete structure of the game. In
particular, they may not be aware of moves that they and other agents can make.
We show how such games can be represented; the key idea is to describe the game
from the point of view of every agent at every node of the game tree. We
provide a generalization of Nash equilibrium and show that every game with
awareness has a generalized Nash equilibrium. Finally, we extend these results
to games with awareness of unawareness, where a player i may be aware that a
player j can make moves that i is not aware of, and to subjective games, where
payers may have no common knowledge regarding the actual game and their beliefs
are incompatible with a common prior.Comment: 45 pages, 3 figures, a preliminary version was presented at AAMAS0
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