Games with Unawareness

Feinberg Yossi ()
Additional contact information
Feinberg Yossi: Stanford Graduate School of Business, Stanford University, Stanford, 94305-5015, CA, USA

The B.E. Journal of Theoretical Economics, 2021, vol. 21, issue 2, 433-488

Abstract: We provide a tool to model and solve strategic situations where players’ perceptions are limited, as well as situations where players realize that other players’ perceptions may be limited and so on. We define normal, repeated, incomplete information, and extensive form games with unawareness using a unified methodology. A game with unawareness is defined as a collection of standard games (of the corresponding form). The collection specifies how each player views the game, how she views the other players’ perceptions of the game and so on. The modeler’s description of perceptions, the players’ description of other players’ perceptions, etc. are shown to have consistent representations. We extend solution concepts such as rationalizability and Nash equilibrium to these games and study their properties. It is shown that while unawareness in normal form games can be mapped to incomplete information games, the extended Nash equilibrium solution is not mapped to a known solution concept in the equivalent incomplete information games, implying that games with unawareness generate novel types of behavior.

Keywords: games; unawareness (search for similar items in EconPapers)
JEL-codes: C72 D81 D82 (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1515/bejte-2018-0186 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:bejtec:v:21:y:2021:i:2:p:433-488:n:1

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/bejte/html

DOI: 10.1515/bejte-2018-0186

Access Statistics for this article

The B.E. Journal of Theoretical Economics is currently edited by Burkhard C. Schipper

More articles in The B.E. Journal of Theoretical Economics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().