Iterated expectations, compact spaces, and common priors
AbstractExtending to infinite state spaces that are compact metric spaces a result previously attained by D. Samet solely in the context of finite state spaces, a necessary and sufficient condition for the existence of a common prior for several players is given in terms of the players' present beliefs only. A common prior exists if and only if for each random variable it is common knowledge that all Cesàro means of iterated expectations with respect to any permutation converge to the same value; this value is its expectation with respect to the common prior. It is further shown that compactness is a necessary condition for some of the results.
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Bibliographic InfoArticle provided by Elsevier in its journal Games and Economic Behavior.
Volume (Year): 72 (2011)
Issue (Month): 1 (May)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622836
Common priors Iterated expectations;
Other versions of this item:
- Hellman, Ziv, 2007. "Iterated Expectations, Compact Spaces and Common Priors," MPRA Paper 3794, University Library of Munich, Germany.
- Ziv Hellman, 2009. "Iterated Expectations, Compact Spaces, and Common Priors," Discussion Paper Series dp522, The Center for the Study of Rationality, Hebrew University, Jerusalem.
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
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