There's an excellent book called Rational Ritual[1][2][3] which develops this idea much more fully. The thesis is that common knowledge (I know something, and I know everyone else knows it too) is very powerful and rationally drives people's behavior.
One of the arguments in the book revolves around the absurd pricing of advertising during big public events like the Super Bowl. If advertisers weren't concerned about the common knowledge aspect of their messages, they would air their ads when the cost per viewer is lowest. And you do see this with non-social goods, which tend to be advertised during off hours. But companies producing social goods like beer pay much more per viewer for prime-time and Super Bowl slots in order to get their product into the cultural zeitgeist. If you see something in a Super Bowl ad, you know most other people have seen it too.
One of the arguments in the book revolves around the absurd pricing of advertising during big public events like the Super Bowl. If advertisers weren't concerned about the common knowledge aspect of their messages, they would air their ads when the cost per viewer is lowest. And you do see this with non-social goods, which tend to be advertised during off hours. But companies producing social goods like beer pay much more per viewer for prime-time and Super Bowl slots in order to get their product into the cultural zeitgeist. If you see something in a Super Bowl ad, you know most other people have seen it too.
[1] http://press.princeton.edu/titles/9998.html
[2] PDF of the original 2001 manuscript: http://www.sscnet.ucla.edu/polisci/cpworkshop/papers/Chwe1.p...
[3] http://www.amazon.com/Rational-Ritual-Culture-Coordination-K...