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The positive foundation of the common prior assumption

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Author Info
HEIFETZ, Aviad
Abstract

The existence of a common prior is a property of the state space used to model the players' incomplete information. We show that this property is not just a technical artifact of the model, but that it is immanent to the players' beliefs. To this end, we devise a condition, phrased solely in terms of the players' mutual beliefs about the basic, objective issues ofpossible uncertainty, which is equivalent to the existence of a common prior. This condition specifies a procedure of enquiry addressed to the players, which detects when there is no common prior among them.

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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 2003052.

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Date of creation: 01 Jul 2003
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Handle: RePEc:cor:louvco:2003052

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  1. Heifetz, Aviad & Samet, Dov, 1998. "Topology-Free Typology of Beliefs," Journal of Economic Theory, Elsevier, vol. 82(2), pages 324-341, October. [Downloadable!] (restricted)
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  1. Barton L. Lipman, 2005. "Finite Order Implications of Common Priors in Infinite Models," Boston University - Department of Economics - Working Papers Series WP2005-009, Boston University - Department of Economics. [Downloadable!]
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This page was last updated on 2009-11-19.


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