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Efficient communication, common knowledge, and consensus

Author

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  • Tsakas, Elias

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Voorneveld, Mark

    (Tilburg University, Department of Econometrics and Operations Research, The Netherlands)

Abstract

We study a model of pairwise communication in a finite population of Bayesian agents. We show that, in contrast with claims to the contrary in the existing literature, communication under a fair protocol may not lead to common knowledge of signals. We prove that commonly known signals are achieved if the individuals convey, in addition to their own message, the information about every individual’s most recent signal they are aware of. If the signal is a posterior probability about some event, common knowledge implies consensus.

Suggested Citation

  • Tsakas, Elias & Voorneveld, Mark, 2007. "Efficient communication, common knowledge, and consensus," Working Papers in Economics 255, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0255
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    File URL: http://hdl.handle.net/2077/4576
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    References listed on IDEAS

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    7. WEYERS , Sonia, 1992. "Three results on communication, information and common knowledge," LIDAM Discussion Papers CORE 1992028, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    More about this item

    Keywords

    Private information; communication; common knowledge; consensus;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D89 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Other

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