IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpga/9703005.html
   My bibliography  Save this paper

Finite Order Implications of Common Priors

Author

Listed:
  • Barton L. Lipman

    (University of Western Ontario)

Abstract

I characterize the implications of the common prior assumption for finite orders of beliefs about beliefs at a state and show that the only such implications are those stemming from the weaker assumption of a common support. More precisely, given any model where priors have the same support and any finite $N$, there is another model with common priors which has the same $n^{\rm th}$ order beliefs for all $n\ne N$.

Suggested Citation

  • Barton L. Lipman, 1997. "Finite Order Implications of Common Priors," Game Theory and Information 9703005, EconWPA.
  • Handle: RePEc:wpa:wuwpga:9703005 Note: Type of Document - LaTeX; prepared on IBM PC ; to print on ;
    as

    Download full text from publisher

    File URL: http://econwpa.repec.org/eps/game/papers/9703/9703005.tex
    Download Restriction: no

    File URL: http://econwpa.repec.org/eps/game/papers/9703/9703005.pdf
    Download Restriction: no

    File URL: http://econwpa.repec.org/eps/game/papers/9703/9703005.ps.gz
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Adam Brandenburger & Eddie Dekel, 2014. "Hierarchies of Beliefs and Common Knowledge," World Scientific Book Chapters,in: The Language of Game Theory Putting Epistemics into the Mathematics of Games, chapter 2, pages 31-41 World Scientific Publishing Co. Pte. Ltd..
    2. Aumann, Robert J, 1987. "Correlated Equilibrium as an Expression of Bayesian Rationality," Econometrica, Econometric Society, pages 1-18.
    3. Paul Milgrom & Nancy L.Stokey, 1979. "Information, Trade, and Common Knowledge," Discussion Papers 377R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    4. Milgrom, Paul & Stokey, Nancy, 1982. "Information, trade and common knowledge," Journal of Economic Theory, Elsevier, vol. 26(1), pages 17-27, February.
    5. Nyarko, Yaw, 1991. "Most Games Violate the Harsanyi Doctrine," Working Papers 91-39, C.V. Starr Center for Applied Economics, New York University.
    6. Werlang, Sérgio Ribeiro da Costa, 1988. "Common knowledge," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 118, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    7. Morris, Stephen, 1994. "Trade with Heterogeneous Prior Beliefs and Asymmetric Information," Econometrica, Econometric Society, vol. 62(6), pages 1327-1347, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kim-Sau Chung & J.C. Ely, 2007. "Foundations of Dominant-Strategy Mechanisms," Review of Economic Studies, Oxford University Press, vol. 74(2), pages 447-476.
    2. Liu, Qingmin, 2015. "Correlation and common priors in games with incomplete information," Journal of Economic Theory, Elsevier, vol. 157(C), pages 49-75.
    3. Oyama, Daisuke & Tercieux, Olivier, 2010. "Robust equilibria under non-common priors," Journal of Economic Theory, Elsevier, pages 752-784.
    4. Oyama, Daisuke & Tercieux, Olivier, 2012. "On the strategic impact of an event under non-common priors," Games and Economic Behavior, Elsevier, pages 321-331.
    5. Lipman, Barton L., 2010. "Finite order implications of common priors in infinite models," Journal of Mathematical Economics, Elsevier, vol. 46(1), pages 56-70, January.
    6. Eddie Dekel & Drew Fudenberg & Stephen Morris, 2005. "Topologies on Types," Harvard Institute of Economic Research Working Papers 2093, Harvard - Institute of Economic Research.
    7. Rodrigues-Neto, José Alvaro, 2012. "The cycles approach," Journal of Mathematical Economics, Elsevier, vol. 48(4), pages 207-211.
    8. Angeletos, George-Marios & La’O, Jennifer, 2009. "Incomplete information, higher-order beliefs and price inertia," Journal of Monetary Economics, Elsevier, pages 19-37.
    9. Tsakas Elias, 2012. "Rational belief hierarchies," Research Memorandum 004, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    10. Angeletos, George-Marios & La’O, Jennifer, 2009. "Incomplete information, higher-order beliefs and price inertia," Journal of Monetary Economics, Elsevier, pages 19-37.
    11. Dekel, Eddie & Fudenberg, Drew & Morris, Stephen, 2006. "Topologies on types," Theoretical Economics, Econometric Society, pages 275-309.
    12. Friedenberg, Amanda, 2010. "When do type structures contain all hierarchies of beliefs?," Games and Economic Behavior, Elsevier, vol. 68(1), pages 108-129, January.
    13. Rodrigues-Neto, José Alvaro, 2009. "From posteriors to priors via cycles," Journal of Economic Theory, Elsevier, vol. 144(2), pages 876-883, March.
    14. Takashi Kunimoto, 2006. "The Robustness Of Equilibrium Analysis: The Case Of Undominated Nash Equilibrium," Departmental Working Papers 2006-26, McGill University, Department of Economics.
    15. Barelli, Paulo, 2009. "Consistency of beliefs and epistemic conditions for Nash and correlated equilibria," Games and Economic Behavior, Elsevier, vol. 67(2), pages 363-375, November.

    More about this item

    Keywords

    common priors;

    JEL classification:

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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpga:9703005. 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: (EconWPA). General contact details of provider: http://econwpa.repec.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.