QED Working Paper Number
1388

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 Viero (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.

JEL Codes
D8
D81
D83
D9
Keywords
Awareness
Unawareness
Intertemporal Utility
Recursive Utility
Reverse Bayesianism
Working Paper