From posteriors to priors via cycles

Rodrigues-Neto, José Alvaro
Authors registered in the RePEc Author Service: Jose Alvaro Rodrigues Neto

Journal of Economic Theory, 2009, vol. 144, issue 2, pages 876-883

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.

Keywords: Consistency; Cycle; Incomplete; information; Join; Knowledge; Meet; Partition; Prior; Posterior; Type (search for similar items in EconPapers)
Date: 2009

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Persistent link: http://EconPapers.repec.org/RePEc:eee:jetheo:v:144:y:2009:i:2:p:876-883

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