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Common Knowledge With Monotone Statistics

Author

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  • James Bergin

    (Queen's University)

Abstract

When individual statistics are aggregated through a strictly monotone function to an aggregate statistic, common knowledge of the value of the aggregate statistic does not imply, in general, constancy of the individual statistics. This paper discusses two circumstances where it does occur. The first case arises when partitions are independently drawn: in this case common knowledge of the value of the aggregator function implies (with probability one) constancy of the individual statistics. The second case is where private statistics are related: affiliation of individual statistics and a lattice condition imply constancy of the individual statistics when the value of the aggregate statistic is common knowledge.

Suggested Citation

  • James Bergin, 1998. "Common Knowledge With Monotone Statistics," Working Paper 974, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:974
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    File URL: https://www.econ.queensu.ca/sites/econ.queensu.ca/files/qed_wp_974.pdf
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    Cited by:

    1. Luciano De Castro, 2010. "Affiliation, Equilibrium Existence and Revenue Ranking of Auctions," Discussion Papers 1530, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    2. Luciano I. de Castro, 2009. "Affiliation and Dependence in Economic Models," Discussion Papers 1479, Northwestern University, Center for Mathematical Studies in Economics and Management Science.

    More about this item

    Keywords

    Affiliated Information; Common Knowledge; Aggregate Statistics; Random Information;
    All these keywords.

    JEL classification:

    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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