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On the state-space model of unawareness

Published 10 Apr 2023 in econ.GN and q-fin.EC | (2304.04626v2)

Abstract: We show that the knowledge of an agent carrying non-trivial unawareness violates the standard property of 'necessitation', therefore necessitation cannot be used to refute the standard state-space model. A revised version of necessitation preserves non-trivial unawareness and solves the classical Dekel-Lipman-Rustichini result. We propose a generalised knowledge operator consistent with the standard state-space model of unawareness, including the model of infinite state-space.

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