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Preference Aggregation With Incomplete Information
Author(s) -
Chambers Christopher P.,
Hayashi Takashi
Publication year - 2014
Publication title -
econometrica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.7
H-Index - 199
eISSN - 1468-0262
pISSN - 0012-9682
DOI - 10.3982/ecta11612
Subject(s) - ex ante , pareto principle , monotonic function , complete information , preference , mathematical economics , dominance (genetics) , property (philosophy) , economics , econometrics , common knowledge (logic) , mathematics , computer science , microeconomics , artificial intelligence , operations management , mathematical analysis , biochemistry , chemistry , philosophy , epistemology , multimodal logic , gene , epistemic modal logic , description logic , macroeconomics
We show in an environment of incomplete information that monotonicity and the Pareto property applied only when there is common knowledge of Pareto dominance imply (i) there must exist a common prior over the smallest common knowledge event, and (ii) aggregation must be ex ante and ex post utilitarian with respect to that common prior and individual von Neumann–Morgenstern utility indices.