Applying unawareness belief structures introduced in Heifetz et al. (Games Econ Behav 77:100–121, <CitationRef CitationID="CR13">2013a</CitationRef>), we develop Bayesian games with unawareness, define equilibrium, and prove existence. We show how equilibria are extended naturally from lower to higher awareness levels and restricted from...</citationref>

This paper contributes to the literature on default in general equilibrium. Borrowing and lending takes place via a clearing house (bank) that monitors agents and enforces contracts. Our model develops a concept of bankruptcy equilibrium that is a direct generalization of the standard general...