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A difficulty in implementing correlated equilibrium distributions

  • Kar, Anirban
  • Ray, Indrajit
  • Serrano, Roberto

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, that a social choice function that chooses any particular correlated equilibrium distribution does not satisfy Maskin monotonicity and therefore cannot be fully implemented in Nash equilibrium. Thus, no mechanism that aims to understand a correlated distribution as the unique outcome of Nash equilibrium play can be found.

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Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 69 (2010)
Issue (Month): 1 (May)
Pages: 189-193

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Handle: RePEc:eee:gamebe:v:69:y:2010:i:1:p:189-193
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622836

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