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"Approximate Common Knowledge Revisited''

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  • Stephen Morris

Abstract

Suppose we replace "knowledge" by "belief with probability p" in standard definitions of common knowledge. Very different notions arise depending on the exact definition of common knowledge used in the substitution. This paper demonstrates those differences and identifies which notion is relevant in each of three contexts: equilibrium analysis in incomplete information games, best response dynamics in incomplete information games, and agreeing to disagree/no trade results.

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Paper provided by University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences in its series CARESS Working Papres with number 96-06.

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Handle: RePEc:wop:pennca:96-06

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Cited by:
  1. Martin W. Cripps & Jeffrey C. Ely & George J. Mailath & Larry Samuelson, 2007. "Common Learning," PIER Working Paper Archive 07-018, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    • Martin W. Cripps & Jeffrey C. Ely & George J. Mailath & Larry Samuelson, 2008. "Common Learning," Econometrica, Econometric Society, vol. 76(4), pages 909-933, 07.
  2. Martin Cripps & Jeffrey Ely & George Mailath & Larry Samuelson, 2013. "Common learning with intertemporal dependence," International Journal of Game Theory, Springer, vol. 42(1), pages 55-98, February.
  3. Robin Hanson, 2003. "For Bayesian Wannabes, Are Disagreements Not About Information?," Theory and Decision, Springer, vol. 54(2), pages 105-123, March.
  4. Christian Schmidt, 2006. "Quelques points de rencontre entre ├ęconomistes et psychologues," Revue ├ęconomique, Presses de Sciences-Po, vol. 57(2), pages 242-257.
  5. Wilson Perez, 2004. "Divide and Conquer: Noisy Communication in Networks, Power, and Wealth Distribution," Working Papers 2004.33, Fondazione Eni Enrico Mattei.

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