The Geometry of Nash Equilibria and Correlated Equilibria and a Generalization of Zero-Sum Games
AbstractA pure strategy is coherent if it is played with positive probability in at least one correlated equilibrium. A game is pre-tight if in every correlated equilibrium, all incentives constraints for non deviating to a coherent strategy are tight. We show that there exists a Nash equilibrium in the relative interior of the correlated equilibrium polytope if and only if the game is pre-tight. Furthermore, the class of pre-tight games is shown to include and generalize the class of two-player zero-sum games.
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Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 641.
Length: 32 pages
Date of creation: 29 Aug 2006
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correlated equilibrium; Nash equilibrium; zero-sum games; dual reduction;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-12-09 (All new papers)
- NEP-GTH-2006-12-09 (Game Theory)
- NEP-MIC-2006-12-09 (Microeconomics)
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