Heifetz, Aviad; Meier, Martin; Schipper, Burkhard - Economics Department, University of California-Davis - 2011
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 …