DMCA
Inductive reasoning about unawareness (2009)
| Citations: | 6 - 1 self |
BibTeX
@MISC{Grant09inductivereasoning,
author = {Simon Grant and John Quiggin and John Quiggin},
title = {Inductive reasoning about unawareness},
year = {2009}
}
Share
 |
 |
 |
 |
||
OpenURL
Abstract
Inductive reasoning about unawareness We develop a model of games with awareness that allows for di erential levels of awareness. We show that, for the standard modal logical interpretations of belief and awareness, a player cannot believe there exist propositions of which he is unaware. Nevertheless, we argue that a boundedly rational individual may regard the possibility that there exist propositions of which she is unaware as being supported by inductive reasoning, based on past experience and consideration of the limited awareness of others. In this paper, we provide a formal representation of inductive reasoning in the context of a dynamic game with awareness. We show that, given di erential awareness over time and between players, individuals can derive inductive support for propositions expressing their own unawareness. JEL Classi cation: D80, D82 Key words: unawareness, bounded rationality, induction
