Template-Type: ReDIF-Paper 1.0

Author-Name: Barton L. Lipman
Author-X-Name-First: Barton 
Author-X-Name-Last: Lipman
Author-Email:blipman@bu.edu
Author-Workplace-Name:Department of Economics, Boston University




Title: Finite Order Implications of Common Priors in Infinite Models

Abstract: Lipman [2003] shows that in a finite model, the common prior assumption has weak
implications for finite orders of beliefs about beliefs. In particular, the only such implications
are those stemming from the weaker assumption of a common support. To explore
the role of the finite model assumption in generating this conclusion, this paper considers
the finite order implications of common priors in a countable model. I show that in
countable models, the common prior assumption also implies a tail consistency condition
regarding beliefs. More specifically, I show that in a countable model, the finite order
implications of the common prior assumption are the same as those stemming from the
assumption that priors have a common support and have tail probabilities converging to
zero at the same rate.

Length: 26 pages
Creation-Date:  2005-03
Revision-Date:
Publication-Status:
File-URL: http://www.bu.edu/econ/workingpapers/papers/Barton%20L.%20Lipman/wp2005/inf-cpa.pdf
File-Format: Application/pdf
File-Function: 
Number: WP2005-009
Classification-JEL: 
Keywords:
Handle: RePEc:bos:wpaper:WP2005-009