A Unified Epistemological Theory of Information Processing

44 Pages Posted: 8 Jan 2019 Last revised: 14 Jan 2019

Date Written: December 16, 2018


What does it mean for an agent faced with choice under uncertainty to “know” something? While a variety of mathematical methods are available to construct formal models to answer this question, the combination of different approaches may lead to unsettling paradoxes. I propose a unified theory that eliminates such inconsistencies by relying on a sharp conceptual distinction between information the decision-maker observes and how much of that information she can cognitively process. The resulting model allows for natural decision-theoretic characterizations of comparing different amounts of information. I also apply the results to the problem of common knowledge and information design.

Keywords: information, knowledge, mental capacity, measure theory, partitions

JEL Classification: C60, D81, D83, G11, K14

Suggested Citation

Tóbiás, Áron, A Unified Epistemological Theory of Information Processing (December 16, 2018). Available at SSRN: https://ssrn.com/abstract=3306349 or http://dx.doi.org/10.2139/ssrn.3306349

Áron Tóbiás (Contact Author)

Syracuse University ( email )

110 Eggers Hall
Syracuse University
Syracuse, NY 13244-1020
United States

HOME PAGE: http://www.arontobias.com

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