This paper surveys the implications of “common knowledge” in interactive epistemology and game theory, with special emphasis on speculation, betting, agreeing to disagree, and coordination. The implications of approximate common knowledge are also analyzed. Approximate common knowledge is deﬁned three ways: as knowledge of knowledge … of knowledge, iterated N times; as p -common knowledge; and as weak p -common knowledge. Finally the implications of common knowledge are examined when agents are boundedly rational.
Geanakoplos, John, "Common Knowledge" (1993). Cowles Foundation Discussion Papers. 1305.