Reverse Bayesianism: A Generalization

This paper studies an environment in which a decision maker choosing between acts may initially be unaware of certain consequences. We follow the approach of Karni and Viero (2013) to modeling increasing awareness, which allows for the decision maker's state space to expand as she becomes aware of new possible consequences. We generalize the main result in Karni and Viero (2013) by allowing the discovery of new consequences to nullify some states that were non-null before the discovery. We also provide alternative assumptions which strengthen the predictions of the belief updating model.