We define a cautious version of extensive-form rationalizability for generalized extensive- form games with unawareness … set. We demonstrate the applicability of prudent rationalizability. In games of disclosure of verifiable information, we … show that prudent rationalizability yields unraveling under full awareness but unraveling might fail under unawareness. We …

Heifetz, Meier and Schipper (2013) introduced generalized extensive-form games that allow for asymmetric unawareness … generalized extensive-form game with unawareness may consist of a collection of normal-form games. We use it to characterize … unawareness, a player's information set not only determines which nodes he considers possible but also of which game tree(s) he is …

Equilibrium notions for games with unawareness in the literature cannot be interpreted as steady-states of a learning … process because players may discover novel actions during play. In this sense, many games with unawareness are "self … state there is an extensive-form game with unawareness that together with the players' play determines the transition to …

We extend Kuhn's Theorem to extensive games with unawareness. This extension is not entirely obvious: First, extensive … games with non-trivial unawareness involve a forest of partially ordered game trees rather than just one game tree. An … partially an object of ex-ante choice in games with unawareness. Finally, histories that a player may expect to reach with a …

We model firms’ quality disclosure and pricing in the presence of cursed consumers, who fail to be sufficiently … that work under monopoly, i.e. mandatory disclosure, third party disclosure and consumer education, may all increase …

We model firms' quality disclosure and pricing in the presence of cursed consumers, who fail to be sufficiently ….e. mandatory disclosure, third party disclosure and consumer education may all increase exploitation and decrease welfare. Even …