Speculation Under Unawareness

No hard triggers under speculation ? (

The value of information under unawareness

The value of information is examined in a single-agent environment with unawareness. Although the agent has a correct prior about events he is aware of and has a clear understanding of his available actions and payoffs, his unawareness may lead him to commit information processing errors and to behave suboptimally. As a result, the value of information can be negative, contrasting what is true ...

Speculative Trade under Unawareness: The Infinite Case∗

We prove a “no-speculative-trade” theorem under unawareness for the infinite case. This generalizes the result for the finite case by Heifetz, Meier, and Schipper (2013).

Bayesian Games with Unawareness and Unawareness Perfection∗

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 awareness levels. We apply Bayesian games with unawareness to investigate the robustness of equilibri...

A Representation Result for Choice under Conscious Unawareness

There are many examples in policy-making, investment and dayto-day life where the set of contingencies the decision-maker is aware of does not resolve all uncertainty about the consequences of actions. In such circumstances, the decision-maker may nevertheless reason that there exist certain aspects of the `full' state space of which she is unaware, that is, she may think it is possible she is ...