A BEJTE Topics article.

Abstract

By revisiting the classic dirty-face problem we highlight the notion of `unawareness' (a simpler state space) and compare it with `impreciseness' (a coarser information partition). The outcomes are derived with various information structures. That allows us to 1) demonstrate a model of differing interpretations of public information using asymmetric awareness; 2) compare and contrast the impact of unawareness and impreciseness on learning; 3) analyze the value of awareness and the value of preciseness; and 4) demonstrate the effect of unawareness and impreciseness on information revelation with indirect aggregation.

Submitted: November 21, 2007 · Accepted: November 4, 2008 · Published: December 22, 2008

Recommended Citation

Liu, Zhen (2008) "The Dirty Face Problem with Unawareness," The B.E. Journal of Theoretical Economics: Vol. 8 : Iss. 1 (Topics), Article 28.
DOI: 10.2202/1935-1704.1441
Available at: http://www.bepress.com/bejte/vol8/iss1/art28