We study the "generalized correlated equilibria" of a game when players make information processing errors. It is shown that the assumption of information processing errors is equivalent to that of "subjectivity" (i.e., differences between the players' priors). Hence a bounded rationality justification of subjective priors is provided. We also describe the set of distributions on actions induced by generalized correlated equilibria with common priors.
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Length: 21 pages Date of creation: 1988 Date of revision:
Aug 1989 Publication status: Published in Games and Economic Behavior (1992), 4: 182-201 Handle: RePEc:cwl:cwldpp:884r
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