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Incomplete-Information Models of Large Economies with Anonymity: Existence and Uniqueness of Common Priors

Author

Listed:
  • Martin Hellwig

    (Max Planck Institute for Research on Collective Goods, Bonn)

Abstract

The paper provides a speci?cation of belief systems for models of large economies with anonymity in which aggregate states depend only on cross-section distributions of types. For belief systems satisfying certain conditions of mutual absolute continuity, the paper gives a necessary and sufficient condition for the existence of a common prior. Under the given conditions, the common prior is unique.

Suggested Citation

  • Martin Hellwig, 2011. "Incomplete-Information Models of Large Economies with Anonymity: Existence and Uniqueness of Common Priors," Discussion Paper Series of the Max Planck Institute for Behavioral Economics 2011_08, Max Planck Institute for Behavioral Economics.
    • Handle: RePEc:mpg:wpaper:2011_08
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    References listed on IDEAS

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    8. Rodrigues-Neto, José Alvaro, 2009. "From posteriors to priors via cycles," Journal of Economic Theory, Elsevier, vol. 144(2), pages 876-883, March.
    9. Konrad Podczeck, 2010. "On existence of rich Fubini extensions," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 45(1), pages 1-22, October.
    10. Sun, Yeneng, 2006. "The exact law of large numbers via Fubini extension and characterization of insurable risks," Journal of Economic Theory, Elsevier, vol. 126(1), pages 31-69, January.
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    Citations

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    Cited by:

    1. Liu, Qingmin, 2015. "Correlation and common priors in games with incomplete information," Journal of Economic Theory, Elsevier, vol. 157(C), pages 49-75.
    2. Hellwig, Martin, 2022. "Incomplete-information games in large populations with anonymity," Theoretical Economics, Econometric Society, vol. 17(1), January.
    3. Felix Bierbrauer & Martin Hellwig, 2011. "Mechanism Design and Voting for Public-Good Provision," Discussion Paper Series of the Max Planck Institute for Behavioral Economics 2011_31, Max Planck Institute for Behavioral Economics.
    4. Felix J. Bierbrauer & Martin F. Hellwig, 2015. "Public-Good Provision in Large Economies," Discussion Paper Series of the Max Planck Institute for Behavioral Economics 2015_12, Max Planck Institute for Behavioral Economics.
    5. Martin Hellwig, 2015. "Financial Stability and Monetary Policy," Discussion Paper Series of the Max Planck Institute for Behavioral Economics 2015_10, Max Planck Institute for Behavioral Economics.

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    More about this item

    Keywords

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    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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