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Multiple equilibria as a difficulty in understanding correlated distributions

Author

Listed:
  • Anirban Kar

    (University of Warwick)

  • Indrajit Ray

    (University of Birmingham)

  • Roberto Serrano

    (Brown University and IMDEA Social Sciences)

Abstract

We view achieving a particular correlated equilibrium distribution for a normal form game as an implementation problem. We show, using a parametric version of the two-person Chicken game and a wide class of correlated equilibrium distributions, that a social choice function that chooses a particular correlated equilibrium distribution from this class does not satisfy the Maskin monotonicity condition and therefore can not be fully implemented in Nash equilibrium.

Suggested Citation

  • Anirban Kar & Indrajit Ray & Roberto Serrano, 2007. "Multiple equilibria as a difficulty in understanding correlated distributions," Working Papers 2007-03, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  • Handle: RePEc:imd:wpaper:wp2007-03
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    References listed on IDEAS

    as
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    2. Imre Bárány, 1992. "Fair Distribution Protocols or How the Players Replace Fortune," Mathematics of Operations Research, INFORMS, vol. 17(2), pages 327-340, May.
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      • Robert J. Aumann & Sergiu Hart, 2002. "Long Cheap Talk," Discussion Paper Series dp284, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem, revised Nov 2002.
    15. Abreu, Dilip & Sen, Arunava, 1991. "Virtual Implementation in Nash Equilibrium," Econometrica, Econometric Society, vol. 59(4), pages 997-1021, July.
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    19. Roberto Serrano, 2003. "The Theory of Implementation of Social Choice Rules," Economics Working Papers 0033, Institute for Advanced Study, School of Social Science.
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    More about this item

    Keywords

    correlated equilibrium distribution; implementation; monotonicity;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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