Characterizing Consistency by Monomials and by Product Dispersions
AbstractThis paper derives two characterizations of the Kreps-Wilson concept of consistent beliefs. In the first, beliefs are shown to be consistent iff they can be constructed from the elements of monomial vectors which converge to the strategies. In the second, beliefs are shown to be consistent iff they can be induced by a product dispersion whose marginal dispersions induce the strategies. The first characterization is simpler than the definition in Kreps and Wilson (1982), and the second seems more fundamental in the sense that it is built on an underlying theory of relative probability.
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Bibliographic InfoPaper provided by University of Western Ontario, Department of Economics in its series UWO Department of Economics Working Papers with number 20062.
Date of creation: 2006
Date of revision:
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-02-12 (All new papers)
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.:
- David M Kreps & Robert Wilson, 2003.
Levine's Working Paper Archive
618897000000000813, David K. Levine.
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- Peter A. Streufert, 2006. "Products of Several Relative Probabilities," UWO Department of Economics Working Papers 20061, University of Western Ontario, Department of Economics.
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