Schipper, Burkhard C (2010): Revealed Unawareness.

PDF
MPRA_paper_21491.pdf Download (313kB)  Preview 
Abstract
I develop awarenessdependent subjective expected utility by taking unawareness structures introduced in Heifetz, Meier, and Schipper (2006, 2008, 2009) as primitives in the AnscombeAumann approach to subjective expected utility. I observe that a decision maker is unaware of an event if and only if her choices reveal that the event is "null" and the negation of the event is "null". Moreover, I characterize "impersonal" expected utility that is behaviorally indistinguishable from awarenessdependent subject expected utility and assigns probability zero to some subsets of states that are not necessarily events. I discuss in what sense impersonal expected utility can not represent unawareness.
Item Type:  MPRA Paper 

Original Title:  Revealed Unawareness 
Language:  English 
Keywords:  Unawareness; awareness; unforeseen contingencies; null; zero probability; subjective expected utility; AnscombeAumann; small worlds; extensionality of acts; event exchangeability 
Subjects:  D  Microeconomics > D0  General > D03  Behavioral Microeconomics: Underlying Principles D  Microeconomics > D8  Information, Knowledge, and Uncertainty > D81  Criteria for DecisionMaking under Risk and Uncertainty C  Mathematical and Quantitative Methods > C7  Game Theory and Bargaining Theory > C70  General D  Microeconomics > D8  Information, Knowledge, and Uncertainty > D80  General C  Mathematical and Quantitative Methods > C7  Game Theory and Bargaining Theory > C72  Noncooperative Games 
Item ID:  21491 
Depositing User:  Burkhard C Schipper 
Date Deposited:  22. Mar 2010 00:21 
Last Modified:  14. Mar 2015 12:28 
References:  Ahn, D. and H. Ergin (2010). Framing contingencies, Econometrica, forthcoming. Anscombe, F. and R. Aumann (1963). A definition of subjective probability, Annals of Mathematical Statistics 34, 199205. Blume, L., Easley, D., and J.Y. Halpern (2009). Constructive decision theory, mimeo. Board, O. and K.S. Chung (2009). Objectbased unawareness: Theory and applications, mimeo. Board, O., Chung, K.S., and B.C. Schipper (2009). Two Models of Unawareness: Comparing the ObjectBased and SubjectiveStateSpace Approaches, in: Proceedings of LOFT 2008, Bonanno, G., Loewe, B., and W. van der Hoek (Eds.), Texts in Logic and Games, Amsterdam University Press, forthcoming. Chew S.H. and J.S. Sagi (2006). Event exchangeability: Probabilistic sophistication without continuity or monotonicity, Econometrica 74, 771786. de Finetti, B. (1937). Foresight: Its logical laws, its subjective sources, in: Kyburg, H.E. and H.E. Smokler (eds.) (1964), Studies in subjective probability, John Wiley & Sons, 93158. Dekel, E., Lipman, B., and A. Rustichini (1998). Standard statespace models preclude unawareness, Econometrica 66, 159173. Epstein, L., Marinacci, M., and K. Seo (2007). Coarse contingencies and ambiguity, Theoretical Economics 2, 355394. Fagin, R. and J. Halpern (1988). Belief, awareness, and limited reasoning, Artificial Intelligence 34, 3976. Feinberg, Y. (2009). Games with unawareness, mimeo. Fishburn, P. (1970). Utility theory for decision making, New York: John Wiley. Galanis, S. (2008). Syntactic foundations of unawareness of theorems, mimeo. Galanis, S. (2007). Unawareness of theorems, mimeo. Grant, S. and J. Quiggin (2008). Bounded rationality and small worlds, mimeo. Halpern, J. (2001). Alternative semantics for unawareness, Games and Economic Behavior 37, 321339. Halpern, J. and L. Rego (2008). Interactive unawareness revisited, Games and Economic Behavior 62, 232262. Heifetz, A., Meier, M., and B.C. Schipper (2006). Interactive unawareness, Journal of Economic Theory 130, 7894. Heifetz, A., Meier, M., and B.C. Schipper (2008). A canonical model for interactive unawareness, Games and Economic Behavior 62, 304324. Heifetz, A., Meier, M., and B.C. Schipper (2009). Unawareness, beliefs, and speculative trade, mimeo. Heifetz, A., Meier, M., and B.C. Schipper (2010a). Dynamic unawareness and rationalizable behavior, mimeo. Heifetz, A., Meier, M., and B.C. Schipper (2010b). Bayesian games with unawareness and unawareness perfection, mimeo. Herstein, I. and J. Milnor (1953). An axiomatic approach to measurable utility, Econometrica 21, 291297. Li, J. (2009). Information structures with unawareness, Journal of Economic Theory 144, 977993. Li J. (2008). A note on unawareness and zero probability, mimeo. Meier, M. and B.C. Schipper (2010). Speculative trade under unawareness: The infinite case, mimeo. Modica, S. and A. Rustichini (1999). Unawareness and partitional information structures, Games and Economic Behavior 27, 265298. Savage, L.J. (1954). The foundations of statistics, New York: Dover. 
URI:  https://mpra.ub.unimuenchen.de/id/eprint/21491 