Interactive unawareness

Abstract

The standard state-spaces of asymmetric information preclude non-trivial forms of unawareness (Modica and Rustichini (Theory Decision 37 (1994) 107-124); Dekel, Lipman and Rustichini (Econometrica 66 (1998) 159-173)). We introduce a generalized state-space model that allows for non-trivial unawareness among several individuals, and which satisfies strong properties of knowledge as well as all the desiderata on unawareness proposed this far in the literature. © 2005 Elsevier Inc. All rights reserved. ; Financial support during the preparation of earlier drafts from the European Union via a Marie-Curie Individual Fellowship (HPMF-2002-02073) is gratefully acknowledged. Financial support by the DFG and DAAD is gratefully acknowledged. ; Peer Reviewed