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The hierarchical approach to modeling knowledge and common knowledge

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Author Info
John Geanakoplos () (Cowles Foundation, Yale University, New Haven, CT 06520, USA)
(**), Moshe Y. Vardi () (Department of Computer Science, Rice University, Houston, TX 77005-1892, USA)
Joseph Y. Halpern () (Computer Science Department, Cornell University, Ithaca, NY 14853, USA)
Ronald Fagin () (IBM Almaden Research Center, San Jose, CA 95120, USA)

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Abstract

One approach to representing knowledge or belief of agents, used by economists and computer scientists, involves an infinite hierarchy of beliefs. Such a hierarchy consists of an agent's beliefs about the state of the world, his beliefs about other agents' beliefs about the world, his beliefs about other agents' beliefs about other agents' beliefs about the world, and so on. (Economists have typically modeled belief in terms of a probability distribution on the uncertainty space. In contrast, computer scientists have modeled belief in terms of a set of worlds, intuitively, the ones the agent considers possible.) We consider the question of when a countably infinite hierarchy completely describes the uncertainty of the agents. We provide various necessary and sufficient conditions for this property. It turns out that the probability-based approach can be viewed as satisfying one of these conditions, which explains why a countable hierarchy suffices in this case. These conditions also show that whether a countable hierarchy suffices may depend on the "richness" of the states in the underlying state space. We also consider the question of whether a countable hierarchy suffices for "interesting" sets of events, and show that the answer depends on the definition of "interesting".

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Publisher Info
Article provided by Springer in its journal International Journal of Game Theory.

Volume (Year): 28 (1999)
Issue (Month): 3 ()
Pages: 331-365
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Handle: RePEc:spr:jogath:v:28:y:1999:i:3:p:331-365

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Related research
Keywords: Common knowledge · belief/knowledge hierarchies;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Rubinstein, Ariel, 1989. "The Electronic Mail Game: Strategic Behavior under "Almost Common Knowledge."," American Economic Review, American Economic Association, vol. 79(3), pages 385-91, June. [Downloadable!] (restricted)
  2. Heifetz, Aviad & Samet, Dov, 1998. "Knowledge Spaces with Arbitrarily High Rank," Games and Economic Behavior, Elsevier, vol. 22(2), pages 260-273, February. [Downloadable!] (restricted)
  3. Harsanyi, John C, 1995. "Games with Incomplete Information," American Economic Review, American Economic Association, vol. 85(3), pages 291-303, June.
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  4. Brandenburger Adam & Dekel Eddie, 1993. "Hierarchies of Beliefs and Common Knowledge," Journal of Economic Theory, Elsevier, vol. 59(1), pages 189-198, February. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Oliver Board, 2002. "Dynamic Interactive Epistemology," Economics Series Working Papers 125, University of Oxford, Department of Economics. [Downloadable!]
    Other versions:
  2. Branzei, R. & Tijs, S. & Timmer, J., 2000. "Collecting information to improve decision-making," Discussion Paper 26, Tilburg University, Center for Economic Research. [Downloadable!]
  3. Moscati Ivan, 2009. "Interactive and common knowledge in the state-space model," CESMEP Working Papers 200903, University of Turin. [Downloadable!]
  4. Pivato, Marcus, 2008. "The Discursive Dilemma and Probabilistic Judgement Aggregation," MPRA Paper 8412, University Library of Munich, Germany. [Downloadable!]
  5. Xiao Luo & Yi-Chun Chen, 2004. "A Unified Approach to Information, Knowledge, and Stability," Econometric Society 2004 Far Eastern Meetings 472, Econometric Society. [Downloadable!]
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