Defeasible Description Logics (DDLs) can state defeasible concept inclusions and often use rational closure according to the KLM postulates for reasoning. If in DDLs with quantification a defeasible subsumption relationship holds between concepts, it can also hold if these concepts appear nested in existential restrictions. Earlier reasoning algorithms did not detect this kind of relationships. We devise a new form of canonical models that extend classical ones for εL_⊥ by elements that satisfy increasing amounts of defeasible knowledge and show that reasoning w.r.t. these models yields the missing rational entailments.
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