Knowledge Transfer as a Rational Choice: A Decision Theoretic Characterization

Abstract

This paper presents a game theoretical framework to analyze the possibility of knowledge transfer about a game structure. We study, under asymmetric awareness of two agents in a game, what kind of knowledge can, or cannot, be transferred from one agent who has more knowledge to the other agent with restricted knowledge prior to playing the game. Such situations are generally characterized as a particular class of a recently developed framework of extensive-form games with unawareness and analyzed with the solution concept called rationalizability. We show some properties of such games and example analysis. Also we discuss some ideas to incorporate, in a more general way, inferences of the agents about knowledge transfer under asymmetric awareness.