Consider two agents who learn the value of an unknown parameter by observing a sequence of private signals. The signals are independent and identically distributed across time but not necessarily across agents. We show that that when each agent's signal space is finite, the agents will commonly learn its value, i.e., that the true value of the parameter will become approximate common-knowledge. In contrast, if the agents' observations come from a countably infinite signal space, then this contraction mapping property fails. We show by example that common learning can fail in this case.
|Date of creation:||20 Jun 2007|
|Date of revision:|
|Contact details of provider:|| Postal: 3718 Locust Walk, Philadelphia, PA 19104|
Web page: http://economics.sas.upenn.edu/pier
More information through EDIRC
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.:
- Daron Acemoglu & Victor Chernozhukov & Muhamet Yildiz, 2006.
"Learning and Disagreement in an Uncertain World,"
NBER Working Papers
12648, National Bureau of Economic Research, Inc.
- Carlsson, H. & van Damme, E.E.C., 1990.
"Global games and equilibrium selection,"
1990-52, Tilburg University, Center for Economic Research.
- Hans Carlsson & Eric van Damme, 1993. "Global Games and Equilibrium Selection," Levine's Working Paper Archive 122247000000001088, David K. Levine.
- Carlsson, H. & van Damme, E.E.C., 1993. "Global games and equilibrium selection," Other publications TiSEM 49a54f00-dcec-4fc1-9488-4, Tilburg University, School of Economics and Management.
- Carlsson, H. & Van Damme, E., 1990. "Global Games And Equilibrium Selection," Papers 9052, Tilburg - Center for Economic Research.
- Monderer, Dov & Samet, Dov, 1989. "Approximating common knowledge with common beliefs," Games and Economic Behavior, Elsevier, vol. 1(2), pages 170-190, June.
- Cripps, Martin W. & Mailath, George J. & Samuelson, Larry, 2007.
"Disappearing private reputations in long-run relationships,"
Journal of Economic Theory,
Elsevier, vol. 134(1), pages 287-316, May.
- Martin W. Cripps & George J. Mailath & Larry Samuelson, 2004. "Disappearing Private Reputations in Long-Run Relationships," PIER Working Paper Archive 04-008, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Martin Cripps & George J. Mailath & Larry Samuelson, 2004. "Disappearing Private Reputations in Long-Run Relationships," Levine's Bibliography 122247000000000086, UCLA Department of Economics.
- Martin W. Cripps & George J. Mailath & Larry Samuelson, 2006. "Disappearing Private Reputations in Long-Run Relationships," Levine's Bibliography 321307000000000152, UCLA Department of Economics.
- Cripps,M.W. & Mailath,G.J. & Samuelson,L., 2004. "Disappearing private reputations in long-run relationships," Working papers 5, Wisconsin Madison - Social Systems.
- Martin W. Cripps & Larry Samuelson, 2004. "Disappearing Private Reputations in Long-Run Relationships," PIER Working Paper Archive 04-031, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 28 Jul 2004.
- Thomas Wiseman, 2005. "A Partial Folk Theorem for Games with Unknown Payoff Distributions," Econometrica, Econometric Society, vol. 73(2), pages 629-645, 03.
- Stephen Morris, 1999.
"Approximate common knowledge revisited,"
International Journal of Game Theory,
Springer;Game Theory Society, vol. 28(3), pages 385-408.
- Stephen Morris, . ""Approximate Common Knowledge Revisited''," CARESS Working Papres 96-06, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
- Morris, S., 1999. "Approximate Common Knowledge Revisited," Papers 987r, Yale - Economic Growth Center.
- Stephen Morris, . "Approximate Common Knowledge Revisited," Penn CARESS Working Papers 6be11f49fbded40b2a623aebf, Penn Economics Department.
- Samet, Dov, 1998. "Iterated Expectations and Common Priors," Games and Economic Behavior, Elsevier, vol. 24(1-2), pages 131-141, July.
- Rubinstein, Ariel, 1989. "The Electronic Mail Game: Strategic Behavior under "Almost Common Knowledge."," American Economic Review, American Economic Association, vol. 79(3), pages 385-91, June.
When requesting a correction, please mention this item's handle: RePEc:pen:papers:07-018. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dolly Guarini)
If references are entirely missing, you can add them using this form.