Characterizing common priors in the form of posteriors (Q1572940)
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English | Characterizing common priors in the form of posteriors |
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Characterizing common priors in the form of posteriors (English)
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23 April 2002
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Roughly speaking, the Common Prior Assumption (CPA) means that rational agents in models with asymmetric information have a common prior. \textit{R. J. Aumann} [Ann. Stat. 4, 1236-1239 (1976; Zbl 0379.62003)] proved that if CPA holds then agents cannot agree to disagree. In the present paper the converse statement is proved under an appropriate compactness condition. Also an example is given which demonstrates that the compactness assumption cannot be discarded. For a characterization of the CPA, the author adopts two distinct formalisms: the semantic and the syntactic.
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common prior assumption
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consistency condition
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