Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/58380
Authors: 
Schipper, Burkhard C.
Year of Publication: 
2010
Series/Report no.: 
Working Papers, University of California, Department of Economics 10,5
Abstract: 
I develop awareness-dependent subjective expected utility by taking unawareness structures introduced in Heifetz, Meier, and Schipper (2006, 2008, 2009) as primitives in the Anscombe-Aumann approach to subjective expected utility. I observe that a decision maker is unaware of an event if and only if her choices reveal that the event is null and the negation of the event is null. Moreover, I characterize impersonal expected utility that is behaviorally indistinguishable from awareness-dependent subject expected utility and assigns probability zero to some subsets of states that are not necessarily events. I discuss in what sense impersonal expected utility can not represent unawareness.
Subjects: 
unawareness
awareness
unforeseen contingencies
null
zero probability
subjective expected utility
Anscombe-Aumann
small worlds
extensionality of acts
event exchangeability
JEL: 
C70
C72
D80
D82
Document Type: 
Working Paper

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