Games with Incomplete Awareness

Abstract

A new game form termed games with incomplete awareness is defined. This game form captures unawareness as to other players ’ actions, as well as unawareness of the existence of some players. It also captures interactive unawareness: the awareness of players as to what other players are aware of, and so on. The Nash equilibrium solution is extended to this game form and it is shown that every game with incomplete awareness possesses an extended Nash equilibrium. JEL Classification: C72,D81,D82.

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