Characterizing the Common Prior Assumption

Abstract

The common prior assumption (CPA) is one that, up until quite recently, was almost an article of faith among economists. This assumption says that differences in beliefs among agents can be completely explained by differences in information. Essentially, the picture is that agents start out with identical prior beliefs (the common prior) and then condition on the information that they later receive.

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Document Details

Document Type
Technical Report
Publication Date
May 21, 2000
Accession Number
AD1020507

Entities

People

  • Joseph Halpern

Organizations

  • Cornell University

Tags

Communities of Interest

  • C4I

DTIC Thesaurus Topics

  • Two Dimensional

Fields of Study

  • Economics

Readers

  • Applied Combinatorial Optimization and Logic Circuit Design.
  • Theoretical Analysis.