Advanced Search
MyIDEAS: Login

Intrinsic correlation in games

Contents:

Author Info

  • Brandenburger, Adam
  • Friedenberg, Amanda
Registered author(s):

    Abstract

    Correlations arise naturally in non-cooperative games, e.g., in the equivalence between undominated and optimal strategies in games with more than two players. But the non-cooperative assumption is that players do not coordinate their strategy choices, so where do these correlations come from? The epistemic view of games gives an answer. Under this view, the players' hierarchies of beliefs (beliefs, beliefs about beliefs, etc.) about the strategies played in the game are part of the description of a game. This gives a source of correlation: A player believes other players' strategy choices are correlated, because he believes their hierarchies of beliefs are correlated. We refer to this kind of correlation as "intrinsic," since it comes from variables--viz., the hierarchies of beliefs--that are part of the game. We compare the intrinsic route with the "extrinsic" route taken by Aumann [Subjectivity and correlation in randomized strategies, J. Math. Econ. 1 (1974) 76-96], which adds signals to the original game.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/B6WJ3-4R5F1XD-1/1/9f0f0296bce160d96b7decd98745e89a
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Theory.

    Volume (Year): 141 (2008)
    Issue (Month): 1 (July)
    Pages: 28-67

    as in new window
    Handle: RePEc:eee:jetheo:v:141:y:2008:i:1:p:28-67

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/inca/622869

    Related research

    Keywords:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Brandenburger, Adam & Dekel, Eddie, 1987. "Rationalizability and Correlated Equilibria," Econometrica, Econometric Society, vol. 55(6), pages 1391-1402, November.
    2. D. B. Bernheim, 2010. "Rationalizable Strategic Behavior," Levine's Working Paper Archive 661465000000000381, David K. Levine.
    3. R. Aumann, 2010. "Correlated Equilibrium as an expression of Bayesian Rationality," Levine's Bibliography 513, UCLA Department of Economics.
    4. Jeffrey C. Ely & Marcin Peski, 2005. "Hierarchies of Belief and Interim Rationalizability," Levine's Bibliography 122247000000000817, UCLA Department of Economics.
    5. Marx, Leslie M. & Swinkels, Jeroen M., 1997. "Order Independence for Iterated Weak Dominance," Games and Economic Behavior, Elsevier, vol. 18(2), pages 219-245, February.
    6. Morris, Stephen & Dekel, Eddie & Fudenberg, Drew, 2007. "Interim Correlated Rationalizability," Scholarly Articles 3196333, Harvard University Department of Economics.
    7. AUMANN, Robert J., . "Subjectivity and correlation in randomized strategies," CORE Discussion Papers RP -167, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. Battigalli, Pierpaolo & Siniscalchi, Marciano, 1999. "Hierarchies of Conditional Beliefs and Interactive Epistemology in Dynamic Games," Journal of Economic Theory, Elsevier, vol. 88(1), pages 188-230, September.
    9. D. Pearce, 2010. "Rationalizable Strategic Behavior and the Problem of Perfection," Levine's Working Paper Archive 523, David K. Levine.
    10. Werlang, Sérgio Ribeiro da Costa & Chin-Chiu Tan, Tommy, 1987. "The Bayesian Foundations of Solution Concepts of Games," Economics Working Papers (Ensaios Economicos da EPGE) 111, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
    11. Battigalli Pierpaolo & Siniscalchi Marciano, 2003. "Rationalization and Incomplete Information," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 3(1), pages 1-46, June.
    12. E. Kohlberg & J.-F. Mertens, 1998. "On the Strategic Stability of Equilibria," Levine's Working Paper Archive 445, David K. Levine.
    13. Monderer, Dov & Samet, Dov, 1989. "Approximating common knowledge with common beliefs," Games and Economic Behavior, Elsevier, vol. 1(2), pages 170-190, June.
    14. Pearce, David G, 1984. "Rationalizable Strategic Behavior and the Problem of Perfection," Econometrica, Econometric Society, vol. 52(4), pages 1029-50, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Arieli, Itai, 2010. "Rationalizability in continuous games," Journal of Mathematical Economics, Elsevier, vol. 46(5), pages 912-924, September.
    2. Amanda Friedenberg & Martin Meier, 2011. "On the relationship between hierarchy and type morphisms," Economic Theory, Springer, vol. 46(3), pages 377-399, April.
    3. Du, Songzi, 2012. "Correlated equilibrium and higher order beliefs about play," Games and Economic Behavior, Elsevier, vol. 76(1), pages 74-87.
    4. Pelosse, Yohan, 2009. "Mediated Contests and Strategic Foundations for Contest Success Functions," MPRA Paper 18664, University Library of Munich, Germany.
    5. Brandenburger, Adam, 2010. "The relationship between quantum and classical correlation in games," Games and Economic Behavior, Elsevier, vol. 69(1), pages 175-183, May.
    6. Du, Songzi, 2009. "Correlated Equilibrium via Hierarchies of Beliefs," MPRA Paper 16926, University Library of Munich, Germany.
    7. Pelosse, Yohan, 2011. "Ontological foundation of Nash Equilibrium," MPRA Paper 39934, University Library of Munich, Germany.
    8. Adam Brandenburger, 2008. "The Relationship Between Classical and Quantum Correlation in Games," Levine's Working Paper Archive 122247000000002312, David K. Levine.
    9. Du, Songzi, 2008. "A Note on Intrinsic Correlation," MPRA Paper 12698, University Library of Munich, Germany, revised 12 Jan 2009.
    10. Liu, Qingmin, 2009. "On redundant types and Bayesian formulation of incomplete information," Journal of Economic Theory, Elsevier, vol. 144(5), pages 2115-2145, September.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:jetheo:v:141:y:2008:i:1:p:28-67. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.