Agreeing to agree

Ehud Lehrer, Dov Samet

Research output: Contribution to journalArticlepeer-review

Abstract

Aumann (1976) shows that agents who have a common prior cannot have common knowledge of their posteriors for event E if these posteriors do not coincide. But given an event E, can the agents have posteriors with a common prior such that it is common knowledge that the posteriors for Edo coincide? We show that a necessary and sufficient condition for this is the existence of a nonempty finite event F with the following two properties. First, it is common knowledge at F that the agents cannot tell whether E occurred. Second, this still holds true at F, when F itself becomes common knowledge.

Original languageEnglish
Pages (from-to)269-287
Number of pages19
JournalTheoretical Economics
Volume6
Issue number2
DOIs
StatePublished - May 2011

Keywords

  • Agreement theorem
  • C70
  • Common knowledge
  • Common prior
  • D82
  • No trade theorem

Fingerprint

Dive into the research topics of 'Agreeing to agree'. Together they form a unique fingerprint.

Cite this