Finite Order Implications of Common Priors

Econometrica · 2003 · Volume 71 · Issue 4

Abstract

I characterize the implications of the common prior assumption for finite orders of beliefs about beliefs at a state and show that in finite models, the only such implications are those stemming from the weaker assumption of a common support. More precisely, given any finiteNand any finite partitions model where priors have the same support, there is another finite partitions model with common priors that has the samenth order beliefs and knowledge for alln≤N.

Keywords

Common prior assumption, universal belief space, common knowledge, common belief

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