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Common Knowledge, a Parable
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3 Quarks Daily
by John Allen PaulosA bit of information is common knowledge among a group of people if all parties know it, know that the others know it, know that the others know they know it, and so on.
I discussed common knowledge in my books Once Upon a Number and A Mathematician Plays the Stock Market and illustrated it with the following parable, which suggests its power.
Every woman except Mrs. A and Mrs. B knows about both these cases of infidelity.
Mrs. A knows only of Mr. B’s, and Mrs. B knows only of Mr. A’s.
The parable and these more contemporary speculations demonstrate what can happen when mutual knowledge becomes common knowledge.
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