From Posteriors to Priors via Cycles: An Addendum

Martin F. Hellwig
Max Planck Institute for Research on Collective Goods
April 21, 2011

Abstract

Rodrigues-Neto (2009) has shown that a given specification of posteriors of different players in an incomplete-information setting is compatible with a common prior if and only if the posteriors satisfy the so-called cycle equations. This note shows that, if, for any player, any element of the partition of the this player has a nonempty intersection with any element of the partition of any other player, then it suffices to verify the cycle equations for all cycles of length 4 or less.

http://www.coll.mpg.de/pdf_dat/2011_07online.pdf