Article ID Journal Published Year Pages File Type
957163 Journal of Economic Theory 2011 18 Pages PDF
Abstract

We study the effect of stochastically delayed communication on common knowledge acquisition (common learning). If messages do not report dispatch times, communication prevents common learning under general conditions even if common knowledge is acquired without communication. If messages report dispatch times, communication can destroy common learning under more restrictive conditions. The failure of common learning in the two cases is based on different infection arguments. Communication can destroy common learning even if it ends in finite time, or if agents communicate all of their information. We also identify conditions under which common learning is preserved in the presence of communication.

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