Two people, 1 and 2, are said to have common knowledge of an event $E$ if both know it, 1 knows that 2 knows it, 2 knows that 1 knows is, 1 knows that 2 knows that 1 knows it, and so on. THEOREM. If two people have the same priors, and their posteriors for an event $A$ are common knowledge, then these posteriors are equal.
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