Department of Economics and Business Economics

An intertemporal model of growing awareness

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

Standard

An intertemporal model of growing awareness. / Vierø, Marie Louise.

In: Journal of Economic Theory, Vol. 197, 105351, 10.2021.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

Harvard

APA

CBE

MLA

Vancouver

Author

Vierø, Marie Louise. / An intertemporal model of growing awareness. In: Journal of Economic Theory. 2021 ; Vol. 197.

Bibtex

@article{9d4bb2a35ff141489eb7479afcf395c1,
title = "An intertemporal model of growing awareness",
abstract = "This paper presents an intertemporal model of growing awareness. It provides a framework for analyzing problems with long time horizons in the presence of growing awareness and awareness of unawareness. The framework generalizes both the standard event-tree framework and the framework from Karni and Vier{\o} (2017) of awareness of unawareness. Axioms and a representation are provided along with a recursive formulation of intertemporal utility. This allows for tractable and consistent analysis of intertemporal problems with unawareness. To illustrate the relevance of growing awareness for dynamic decision making, the model is applied to a representative agent intertemporal asset pricing problem.",
keywords = "Asset pricing, Awareness, Intertemporal utility, Recursive utility, Reverse Bayesianism, Unawareness",
author = "Vier{\o}, {Marie Louise}",
note = "Publisher Copyright: {\textcopyright} 2021 The Author",
year = "2021",
month = oct,
doi = "10.1016/j.jet.2021.105351",
language = "English",
volume = "197",
journal = "Journal of Economic Theory",
issn = "0022-0531",
publisher = "Academic Press",

}

RIS

TY - JOUR

T1 - An intertemporal model of growing awareness

AU - Vierø, Marie Louise

N1 - Publisher Copyright: © 2021 The Author

PY - 2021/10

Y1 - 2021/10

N2 - This paper presents an intertemporal model of growing awareness. It provides a framework for analyzing problems with long time horizons in the presence of growing awareness and awareness of unawareness. The framework generalizes both the standard event-tree framework and the framework from Karni and Vierø (2017) of awareness of unawareness. Axioms and a representation are provided along with a recursive formulation of intertemporal utility. This allows for tractable and consistent analysis of intertemporal problems with unawareness. To illustrate the relevance of growing awareness for dynamic decision making, the model is applied to a representative agent intertemporal asset pricing problem.

AB - This paper presents an intertemporal model of growing awareness. It provides a framework for analyzing problems with long time horizons in the presence of growing awareness and awareness of unawareness. The framework generalizes both the standard event-tree framework and the framework from Karni and Vierø (2017) of awareness of unawareness. Axioms and a representation are provided along with a recursive formulation of intertemporal utility. This allows for tractable and consistent analysis of intertemporal problems with unawareness. To illustrate the relevance of growing awareness for dynamic decision making, the model is applied to a representative agent intertemporal asset pricing problem.

KW - Asset pricing

KW - Awareness

KW - Intertemporal utility

KW - Recursive utility

KW - Reverse Bayesianism

KW - Unawareness

UR - http://www.scopus.com/inward/record.url?scp=85115150104&partnerID=8YFLogxK

U2 - 10.1016/j.jet.2021.105351

DO - 10.1016/j.jet.2021.105351

M3 - Journal article

AN - SCOPUS:85115150104

VL - 197

JO - Journal of Economic Theory

JF - Journal of Economic Theory

SN - 0022-0531

M1 - 105351

ER -