Every Argument would Come to an End
Another note from info economics class. Recall Aumann’s common knowledge: fix an event $E$ and consider the two agents’ posteriors of event $E$ after agents each conduct their own deterministic partition experiment. (see this post for a recap) Theorem (Aumann 1976) If A’s posterior is $q_A$ and B’s posterior is $q_B$ is common knowledge for A and B, then $q_A = q_B$. But how come $q_A$ and $q_B$ become common knowledge in the first place? Geanakoplos and Polemarchakis’s paper We Can’t Disagree Forever (1982) gives a way that the two people can use (non-strategic) communication to arrive at a common understanding of each other’s posterior: ...