Aggregate information, common knowledge, and agreeing not to bet
Abstract
I consider a gamble where the sum of the distributed payoffs is proportionate to
the number of participants. I show that no subset of the population can agree
to participate in the bet, if the size of the group is commonly known. Repeated
announcements of the number of the participants leads the population to agree not
to bet.
University
Göteborg University. School of Buisness, Economics and Law
Institution
Department of Economics
Collections
View/ Open
Date
2007-06-18Author
Tsakas, Elias
Keywords
Gamble
private information
communication
common knowledge
JEL: D81, D82, D84, D89
Publication type
report
ISSN
1403-2465
Series/Report no.
Working Papers in Economics
254
Language
eng