Unawareness, beliefs, and speculative trade

B-Tier
Journal: Games and Economic Behavior
Year: 2013
Volume: 77
Issue: 1
Pages: 100-121

Authors (3)

Heifetz, Aviad (not in RePEc) Meier, Martin (not in RePEc) Schipper, Burkhard C. (University of California-Davis)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We define a generalized state-space model with interactive unawareness and probabilistic beliefs. Such models are desirable for potential applications of asymmetric unawareness. Applying our unawareness belief structures, we show that the common prior assumption is too weak to rule out speculative trade in all states. Yet, we prove a generalized “No-speculative-trade” theorem according to which there cannot be common certainty of strict preference to trade. Moreover, we prove a generalization of the “No-agreeing-to-disagree” theorem.

Technical Details

RePEc Handle
repec:eee:gamebe:v:77:y:2013:i:1:p:100-121
Journal Field
Theory
Author Count
3
Added to Database
2026-01-29