"reverse Bayesianism": A Choice-based Theory Of Growing Awareness

Edi Karni and Marie-Louise Vierø

No 1258, Working Paper from Economics Department, Queen's University

Abstract: This paper introduces a new approach to modeling the expanding universe of decision makers in the wake of growing awareness, and invokes the axiomatic approach to model the evolution of decision makers' beliefs as awareness grows. The expanding universe is accompanied by extension of the set of acts, the preference relations over which are linked by a new axiom, invariant risk preferences, asserting that the ranking of lotteries is independent of the set of acts under consideration. The main results are representation theorems and rules for updating beliefs over expanding state spaces and null events that have the flavor of "reverse Bayesianism."

Keywords: Awareness; unawareness; reverse Bayesianism; null events (search for similar items in EconPapers)
JEL-codes: D8 D81 D83 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2010-12
New Economics Papers: this item is included in nep-mic and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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https://www.econ.queensu.ca/sites/econ.queensu.ca/files/qed_wp_1258.pdf First version 2010 (application/pdf)

Related works:
Journal Article: "Reverse Bayesianism": A Choice-Based Theory of Growing Awareness (2013)
Working Paper: "Reverse Bayesianism": A Choice-Based Theory of Growing Awareness (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:1258

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