Feasible joint posterior beliefs with binary signals

Xu Lang and Jiahui Li

Economics Letters, 2023, vol. 227, issue C

Abstract: We extend a quantitative Aumann’s agreement theorem in Arieli et al. (2021) from binary states to arbitrary finite states and provide a complete characterization of feasible joint posteriors beliefs when beliefs supports are binary. Using a network flow approach, we show that the martingale condition and the cut condition for a feasible flow are necessary and sufficient for feasible joint posterior beliefs. For symmetric supports, we show that the cut condition implies that the posteriors beliefs must be positively dependent. We also relate the cut condition to various characterization conditions in the literature.

Keywords: Aumann’s agreement theorem; Joint posterior beliefs; Feasibility; Network flow (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176523001519
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:227:y:2023:i:c:s0165176523001519

DOI: 10.1016/j.econlet.2023.111126

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().