Resource title

Unawareness, Beliefs and Games

Resource image

image for OpenScout resource :: Unawareness, Beliefs and Games

Resource description

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.

Resource author

Aviad Heifetz, Martin Meier, Burkhard C. Schipper

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/22981

Resource license

Adapt according to the presented license agreement and reference the original author.