Agreement theorem for neo-additive beliefs

Lefort, Jean-Philippe; Dominiak, Adam

Lefort, Jean-Philippe; Dominiak, Adam (2013), Agreement theorem for neo-additive beliefs, Economic Theory, 52, 1, p. 1-13. 10.1007/s00199-011-0678-7

Type

Article accepté pour publication ou publié

Date

2013-01

Journal name

Economic Theory

Volume

Number

Publisher

Springer

Pages

1-13

Abstract (EN)

In this paper, we extend Aumann’s (Ann Stat 4:1236–1239, 1976) probabilistic agreement theorem to situations in which agents’ prior beliefs are represented by a common neo-additive capacity. In particular, we characterize the family of updating rules for neo-additive capacities, which are necessary and sufficient for the impossibility of “agreeing to disagree” on the values of posterior capacities as well as on the values of posterior Choquet expectations for binary acts. Furthermore, we show that generalizations of this result to more general acts are impossible.

Subjects / Keywords

Agreement theorem; Common knowledge; Asymmetric information; Choquet expected utility; Neo-additive capacities; Ambiguity

JEL

D82 - Asymmetric and Private Information; Mechanism Design
D81 - Criteria for Decision-Making under Risk and Uncertainty
D70 - General