Unawareness of Theorems
Economic Theory, 52:1, pp. 41-73, January 2013
33 Pages Posted: 12 Jun 2018 Last revised: 24 Feb 2021
Date Written: January 1, 2013
Abstract
This paper provides a set-theoretic model of knowledge and unawareness. A new property called Awareness Leads to Knowledge shows that unawareness of theorems not only constrains an agent’s knowledge, but also, can impair his reasoning about what other agents know. For example, in contrast to Li (2009), Heifetz et al. (2006) and the standard model of knowledge, it is possible that two agents disagree on whether another agent knows a particular event. The model follows Aumann (1976) in defining common knowledge and characterizing it in terms of a self-evident event, but departs in showing that no-trade theorems do not hold.
Keywords: unawareness, uncertainty, knowledge, interactive epistemology, bounded perception
JEL Classification: C70, C72, D80, D82
Suggested Citation: Suggested Citation