Article ID Journal Published Year Pages File Type
956998 Journal of Economic Theory 2009 8 Pages PDF
Abstract

We present new necessary and sufficient conditions for checking if a set of players' posteriors may come from a common prior. A simple diagrammatic device calculates the join and meet of players' knowledge partitions. Each cycle in the diagram has a corresponding cycle equation. Posteriors are consistent with a common prior if and only if all cycle equations are satisfied. We prove that in games of two players, where the join partition has only singletons, a common prior exists if each player's distribution of beliefs over the elements of her opponent's partition is independent of her own private information.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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