Econometrica Vol. 58 No. 5 1990
A Simple Characterization of Stochastically Monotone Functions
Abstract
MCKELVEY AND PAGE (1986) proved a remarkable theorem on common knowledge. Suppose n individuals start with a common prior and then form conditional probabilities of some event of interest based on their different information. If a stochastically monotone aggregate of the n conditional probabilities is common knowledge, then the assessments must be identical. We show that the aggregation of individual assessments allowed for in the theorem admits an elementary characterization: a function is stochastically monotone if and only if it is additively separable into strictly increasing components
- DOI
- 10.2307/2938309
- Volume
- 58
- Issue
- 5
- Pages
- 1241
- Sources
- bibtex:phds-export.bib openalex crossref