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Commonality of information and commonality of beliefs

Author

Listed:
  • Awaya, Yu

    (Department of Economics, University of Rochester)

  • Krishna, Vijay

    (Department of Economics, Pennsylvania State University)

Abstract

A group of agents with a common prior receive informative signals about an unknown state repeatedly over time. If these signals were public, agents' beliefs would be identical and commonly known. This suggests that if signals were private, then the more correlated these are, the greater the commonality of beliefs. We show that, in fact, the opposite may be true. In the long run, conditionally independent signals may achieve greater commonality of beliefs than correlated ones.

Suggested Citation

  • Awaya, Yu & Krishna, Vijay, 0. "Commonality of information and commonality of beliefs," Theoretical Economics, Econometric Society.
    • Handle: RePEc:the:publsh:6256
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Common learning; correlation;

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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