Learning Under Unawareness

31 Pages Posted: 9 Feb 2018

See all articles by Simon Grant

Simon Grant

Rice University - Department of Economics; Australian National University

Idione Meneghel

Australian National University (ANU)

Rabee Tourky

University of Queensland - School of Economics

Date Written: November 27, 2017


We propose a model of learning when experimentation is possible, but unawareness and ambiguity matter. In this model, complete lack of information regarding the underlying data generating process is expressed as a (maximal) family of priors. These priors yield posterior inferences that become more precise as more information becomes available. As information accumulates, however, the decision maker's level of awareness as encoded in the state space may expand. Such newly learned states are initially seen as ambiguous, but as evidence accumulates there is a gradual reduction of ambiguity.

Keywords: learning, unawareness, ambiguity

JEL Classification: D81, D83

Suggested Citation

Grant, Simon Harold and Meneghel, Idione and Tourky, Rabee, Learning Under Unawareness (November 27, 2017). Available at SSRN: https://ssrn.com/abstract=3113983 or http://dx.doi.org/10.2139/ssrn.3113983

Simon Harold Grant (Contact Author)

Rice University - Department of Economics ( email )

6100 South Main Street
Houston, TX 77005
United States
713-348-3332 (Phone)
713-348-6329 (Fax)

Australian National University ( email )

Coombs Building 9
Canberra, Australian Capital Territory 0200
61-2-6125-4602 (Phone)
61-2-6125-3051 (Fax)

Idione Meneghel

Australian National University (ANU) ( email )

Canberra, Australian Capital Territory 2601

Rabee Tourky

University of Queensland - School of Economics ( email )

Brisbane, QLD 4072

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