Definition (common knowledge)

intuition

Fact FF is common knowledge among players of a game if all players know FF, akll the players know that all players know FF, all players know that all players know that all players know FF, etc. (for finite number of levels).

formal definition

Let (N,Y,(i)iN,𝔰)(N, Y, (\mathcal{F}_i)_{i \in N},\mathfrak{s}) be an Aumann model of incomplete information, let AYA \subseteq Y be an event, and let ωY\omega \in Y be a state of the world. The event AA is common knowledge in ω\omega if for every finite sequence of players i1,i2,...,ili_1, i_2, ..., i_l,

ωKi1Ki2...Kil1KilA\omega \in K_{i_1} K_{i_2} ... K_{i_{l-1}} K_{i_l}A

i.e. event AA is common knowledge at state of the world ω\omega if in ω\omega every player knows event AA, every player knows that every player knows event AA, etc.

Theorem (common knowledge for connected component of graph)

#incomplete


References

  1. M. Maschler, E. Solan, and Shmuel Zamir, Game Theory, Cambridge University Press, 2013, p. 331.
  2. https://en.wikipedia.org/wiki/Common_knowledge_(logic)