Characterizing the Common Prior Assumption
AbstractLogical characterizations of the common prior assumption (CPA) are investigated. Two approaches are considered. The first is called frame distinguishability and is similar in spirit to the approaches considered in the economics literature. Results similar to those obtained in the economics literature are proved here as well, namely, that we can distinguish finite spaces that satisfy the CPA from those that do not in terms of disagreements in expectation. However, it is shown that, for the language used here, no formulas can distinguish infinite spaces satisfying the CPA from those that do not. The second approach considered is that of finding a sound and complete axiomatization. Such an axiomatization is provided; again, the key axiom involves disagreements in expectation. The same axiom system is shown to be sound and complete both in the finite and the infinite case. Thus, the two approaches to characterizing the CPA behave quite differently in the case of infinite spaces.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Theory.
Volume (Year): 106 (2002)
Issue (Month): 2 (October)
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- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
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