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Finitely additive beliefs and universal type spaces

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Author Info
MEIER, Martin
Abstract

In this paper we examine the existence of a universal (to be precise: terminal) type space when beliefs are described by finitely additive probability measures. We find that in the category of all type spaces that satisfy certain measurability conditions (-measurability, for some fixed regular cardinal ), there is a universal type space (i.e. a terminal object, that is a type space to which every type space can be mapped in a unique beliefs-preserving way (the morphisms of our category, the so-called type morphisms)), while, by an probabilistic adaption of the elegant sober-drunk example of Heifetz and Samet (1998a), we show that if all subsets of the spaces are required to be measurable there is no universal type space.

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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2002075.

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Date of creation: 00 Dec 2002
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Handle: RePEc:cor:louvco:2002075

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  1. Miklós Pintér, 2005. "A game theoretic application of inverse limit," Game Theory and Information 0503006, EconWPA, revised 14 Mar 2005. [Downloadable!]
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