WCOB Research Seminar: An Intertemporal Model of Growing Awareness

News Story: February 20, 2019
Marie Louise Viero
Marie-Louise Vierø

The Welch College of Business Research Seminar will feature Marie-Louise Vierø, associate professor of economics at Queen’s University, on Tuesday, March 19, at 2 p.m. in W310 at the Martire Center, 5401 Park Avenue, Fairfield. She will present her research, “An Intertemporal Model of Growing Awareness.” This event is free and open to the public.

Marie-Louise Vierø is an associate professor of economics at Queen’s University. She received her B.Sc. from the University of Copenhagen and her Ph.D. from Cornell University. Her research is in decision theory and microeconomic theory, with particular focus on incorporating unawareness and growing awareness into economic models. Her work has been featured in journals such as the American Economic Review, Journal of Economic Theory and the American Economic Journal: Microeconomics. She currently holds a grant from the Social Sciences and Humanities Research Council of Canada. 

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. The framework is then used to incorporate awareness of unawareness into the capital asset pricing model.