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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...
Persistent link: https://www.econbiz.de/10008527367
In this paper we examine the existence of a universal (to be precise: terminal) type space when beliefs are described by finitely additive probability measures. We find that in the category of all type spaces that satisfy certain measurability conditions (-measurability, for some fixed regular...
Persistent link: https://www.econbiz.de/10005008330
The standard state-spaces of asymmetric information preclude non-trivial forms of unawareness (Dekel, Lipman and Rustichini, 1998). We introduce a generalized state-space model that allows for non-trivial unawareness among several individuals, and which satisfies strong properties of knowledge...
Persistent link: https://www.econbiz.de/10005008472
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We define generalized extensive-form games which allow for mutual unawareness of actions. We extend Pearce's (1984) notion of extensive-form (correlated) rationalizability to this setting, explore its properties and prove existence. We define also a new variant of this solution concept, prudent...
Persistent link: https://www.econbiz.de/10005105671
Type spaces in the sense of Harsanyi (1967/68) can be considered as the probabilistic analog of Kripke structures. By an infinitary propositional language with additional operators "individual i assigns probability at least to" and infinitary inference rules, we axiomatize the class of...
Persistent link: https://www.econbiz.de/10005043524
Persistent link: https://www.econbiz.de/10005409366
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Applying unawareness belief structures introduced in Heifetz, Meier, and Schipper (2013a), 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...
Persistent link: https://www.econbiz.de/10010826367
We define generalized extensive-form games which allow for mutual unawareness of actions. We extend Pearce's (1984) notion of extensive-form (correlated) rationalizability to this setting, explore its properties and prove existence.
Persistent link: https://www.econbiz.de/10008917373