Incomplete-Information Models of Large Economies with Anonymity: Existence and Uniqueness of Common Priors

17 Pages Posted: 20 May 2011

See all articles by Martin F. Hellwig

Martin F. Hellwig

Max Planck Institute for Research on Collective Goods; University of Bonn - Department of Economics; European Corporate Governance Institute (ECGI)

Date Written: May 2011

Abstract

The paper provides a specification of belief systems for models of large economies with anonymity in which aggregate states depend only on cross-section distributions of types. For belief systems satisfying certain conditions of mutual absolute continuity, the paper gives a necessary and sufficient condition for the existence of a common prior. Under the given conditions, the common prior is unique.

Keywords: Large Economy, Belief systems, consistency, common prior

JEL Classification: D82, C70, D83

Suggested Citation

Hellwig, Martin F., Incomplete-Information Models of Large Economies with Anonymity: Existence and Uniqueness of Common Priors (May 2011). MPI Collective Goods Preprint, No. 2011/8, Available at SSRN: https://ssrn.com/abstract=1839227 or http://dx.doi.org/10.2139/ssrn.1839227

Martin F. Hellwig (Contact Author)

Max Planck Institute for Research on Collective Goods ( email )

Kurt-Schumacher-Str. 10
D-53113 Bonn, 53113
Germany

University of Bonn - Department of Economics

Adenauerallee 24-42
D-53113 Bonn
Germany

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

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