Common Priors and Markov Chains

Dov Samet
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Dov Samet: Faculty of Mnangement Tel Aviv University

Game Theory and Information from EconWPA

Abstract: The type function of an agent, in a type space, associates with each state a probability distribution on the type space. Thus, a type function can be considered as a Markov chain on the state space. A common prior for the space turns out to be a probability distribution which is invariant under the type functions of all agents. Using the Markovian structure of type spaces we show that a necessary and sufficient condition for the existence of a common prior is that for each random variable it is common knowledge that all its joint averagings converge to the same value.

Keywords: Type spaces; prior; common prior; Markov chain (search for similar items in EconPapers)
JEL-codes: C7 D8 (search for similar items in EconPapers)
Date: 1996-10-21
Note: Type of Document - postscript; prepared on unix; pages: 8
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpga:9610008

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