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Common knowledge and consensus with noisy communication

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  • Frédéric Koessler

Abstract

Parikh and Krasucki (1990) suggested in an informal manner that a consensus does not require common knowledge. Weyers (1992) proved that their model does not permit such a conclusion and that a more general one has to be constructed. Heifetz (1996) gave an example with three agents inspired by computer science which illustrates the intuition of Parikh and Krasucki (1990), i.e., where a consensus is obtained without common knowledge of it. We propose a general setting of noisy communication to confirm this result. We show that common knowledge cannot emerge with any non-public and noisy communication protocol. But, with ``fair\'\' protocols and a sufficiently rich language, a consensus and arbitrary high levels of interactive knowledge are achievable. A minimal example with two agents and two states is given. Nevertheless, for public and noisy communication, some results on common knowledge and consensus are obtained. We apply our results to describe some conditions that ensure or prevent epistemic conditions for Nash equilibrium. In general, non-public and noisy communication is not sufficient for the conjectures to form, during time, a Nash equilibrium, even if the game and mutual rationality are mutually known. However, with only two agents or with a noisy and public communication protocol, sufficient conditions are given for the conjectures to form a Nash equilibrium in a finite number of communication periods.

Suggested Citation

  • Frédéric Koessler, 2000. "Common knowledge and consensus with noisy communication," Working Papers of BETA 2000-05, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  • Handle: RePEc:ulp:sbbeta:2000-05
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    Cited by:

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    2. Penélope Hernández & Bernhard von Stengel, 2014. "Nash Codes for Noisy Channels," Operations Research, INFORMS, vol. 62(6), pages 1221-1235, December.
    3. Hernández, Penélope & Urbano, Amparo & Vila, José E., 2012. "Pragmatic languages with universal grammars," Games and Economic Behavior, Elsevier, vol. 76(2), pages 738-752.
    4. Antonio Jiménez-Martínez, 2012. "Consensus in Communication Networks under Bayesian Updating," Working papers DTE 529, CIDE, División de Economía.
    5. Jakub Steiner & Colin Stewart, 2008. "Communication Can Destroy Common Learning," Working Papers tecipa-330, University of Toronto, Department of Economics.
    6. Steiner, Jakub & Stewart, Colin, 2011. "Communication, timing, and common learning," Journal of Economic Theory, Elsevier, vol. 146(1), pages 230-247, January.
    7. Tsakas, Elias & Tsakas, Nikolas, 2021. "Noisy persuasion," Games and Economic Behavior, Elsevier, vol. 130(C), pages 44-61.
    8. Tsakas, Elias & Voorneveld, Mark, 2011. "On consensus through communication without a commonly known protocol," Journal of Mathematical Economics, Elsevier, vol. 47(6), pages 733-739.
    9. Jérôme Mathis & Marcello Puca & Simone M. Sepe, 2021. "Deliberative Institutions and Optimality," CSEF Working Papers 614, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy, revised 09 Jun 2021.
    10. Crescenzi, Michele, 2022. "Learning to agree over large state spaces," Journal of Mathematical Economics, Elsevier, vol. 100(C).
    11. Tsakas, Elias & Voorneveld, Mark, 2007. "Efficient communication, common knowledge, and consensus," Working Papers in Economics 255, University of Gothenburg, Department of Economics.

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    More about this item

    Keywords

    Noisy communication protocols; common knowledge; consensus; Nash equilibrium; conjectures;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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