One approach to representing knowledge or belief of agents, used by economists and computer scientists, involves an infinite hierarchy of beliefs. Such a hierarchy consists of an agent's beliefs about the state of the world, his beliefs about other agents' beliefs about the world, his beliefs...

Psychologists call the propensity to believe that one's views are the normal views even when they are not false consensus bias. In the interpretation of contracts, false consensus bias should be of special concern when a dispute arises over whether an event fits within contractual language. For...