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A Note on Common Prior

Author

Listed:
  • Miklós Pintér

    (Corvinus University of Budapest)

Abstract

Harsányi introduced the concept of type space in an intuitive way. Later Heifetz and Samet formalized it. Harsányi used conditional probabilities to model the beliefs of the players, Heifetz and Samet avoided using conditional probabilities formally. We show that in both cases the concept of transition probability can reproduce the models, moreover, the transition probability approach fits to both Harsányi's intuition and the formalization of Heifetz and Samet. As a consequence, our results suggest that the concept of common prior is not appropriate to determine the players' beliefs. Two examples are also given.

Suggested Citation

  • Miklós Pintér, 2005. "A Note on Common Prior," Game Theory and Information 0510010, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpga:0510010
    Note: Type of Document - pdf; pages: 10
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/game/papers/0510/0510010.pdf
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    References listed on IDEAS

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    1. Heifetz, Aviad & Samet, Dov, 1998. "Topology-Free Typology of Beliefs," Journal of Economic Theory, Elsevier, vol. 82(2), pages 324-341, October.
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    More about this item

    Keywords

    Beliefs; Conditional probability; Common Prior;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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