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From posteriors to priors via cycles

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Author Info
Rodrigues-Neto, José Alvaro

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Abstract

We present new necessary and sufficient conditions for checking if a set of players' posteriors may come from a common prior. A simple diagrammatic device calculates the join and meet of players' knowledge partitions. Each cycle in the diagram has a corresponding cycle equation. Posteriors are consistent with a common prior if and only if all cycle equations are satisfied. We prove that in games of two players, where the join partition has only singletons, a common prior exists if each player's distribution of beliefs over the elements of her opponent's partition is independent of her own private information.

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File URL: http://www.sciencedirect.com/science/article/B6WJ3-4V3HFJ2-2/2/943abd354531e780a0ae15adad2cbeab
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Publisher Info
Article provided by Elsevier in its journal Journal of Economic Theory.

Volume (Year): 144 (2009)
Issue (Month): 2 (March)
Pages: 876-883
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Handle: RePEc:eee:jetheo:v:144:y:2009:i:2:p:876-883

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Web page: http://www.elsevier.com/locate/inca/622869

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Related research
Keywords: Consistency Cycle Incomplete information Join Knowledge Meet Partition Prior Posterior Type;

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This page was last updated on 2009-11-7.


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