We characterize the set of agreements that the players of a non-cooperative game may reach when they have the opportunity to communicate prior to play. We show that communication allows the players to correlate their actions. Therefore, we take the set of correlated strategies as the space of agreements. Since we consider situations where agreements are non-binding, they must not be subject to profitable self-enforcing deviations by coalitions of players. A coalition-proof equilibrium is a correlated strategy from which no coalition has an improving and self-enforcing deviation. A coalition-proof equilibrium exists when there is a correlated strategy which (i) has a support contained in the set of actions that survive the iterated elimination of strictly dominated strategies, and (ii) weakly Pareto dominates every other correlated strategy whose support is contained in that set. Consequently, the unique equilibrium of a dominance solvable game is coalition-proof.
(This abstract was borrowed from another version of this item.)
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.
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.
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.:
- Ray, Indrajit, 1996.
"Coalition-Proof Correlated Equilibrium: A Definition,"
Games and Economic Behavior,
Elsevier, vol. 17(1), pages 56-79, November.
- RAY , Indrajit, 1993. "Coalition-Proof Correlated Equilibrium : A Definition," CORE Discussion Papers 1993053, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Holmstrom, Bengt & Myerson, Roger B, 1983. "Efficient and Durable Decision Rules with Incomplete Information," Econometrica, Econometric Society, vol. 51(6), pages 1799-1819, November.
- Bengt Holmstrom & Roger B. Myerson, 1981. "Efficient and Durable Decision Rules with Incomplete Information," Discussion Papers 495, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Aumann, Robert J., 1974. "Subjectivity and correlation in randomized strategies," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 67-96, March.
- AUMANN, Robert J., "undated". "Subjectivity and correlation in randomized strategies," CORE Discussion Papers RP 167, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- R. Aumann, 2010. "Subjectivity and Correlation in Randomized Strategies," Levine's Working Paper Archive 389, David K. Levine.
- Bernheim, B. Douglas & Peleg, Bezalel & Whinston, Michael D., 1987. "Coalition-Proof Nash Equilibria I. Concepts," Journal of Economic Theory, Elsevier, vol. 42(1), pages 1-12, June.
- Joseph Farrell, 1987. "Cheap Talk, Coordination, and Entry," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 34-39, Spring. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:17:y:1996:i:1:p:80-112. 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: (Dana Niculescu)
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.