Aggregate information, common knowledge, and agreeing not to bet

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Date

2007-06-18T07:40:24Z

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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.

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Keywords

Gamble, private information, communication, common knowledge, JEL: D81, D82, D84, D89

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