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Correlated equilibrium in a nutshell

Author

Listed:
  • Rabah Amir

    (University of Iowa)

  • Sergei Belkov

    (University of Manchester)

  • Igor V. Evstigneev

    (University of Manchester)

Abstract

We analyze the concept of correlated equilibrium in the framework of two-player two-strategy games. This simple framework makes it possible to clearly demonstrate the characteristic features of this concept. We develop an intuitive and easily memorizable test for equilibrium conditions and provide a complete classification of symmetric correlated equilibria in symmetric games.

Suggested Citation

  • Rabah Amir & Sergei Belkov & Igor V. Evstigneev, 2017. "Correlated equilibrium in a nutshell," Theory and Decision, Springer, vol. 83(4), pages 457-468, December.
    • Handle: RePEc:kap:theord:v:83:y:2017:i:4:d:10.1007_s11238-017-9609-9
    DOI: 10.1007/s11238-017-9609-9
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    References listed on IDEAS

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    2. Aumann, Robert J., 1974. "Subjectivity and correlation in randomized strategies," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 67-96, March.
    3. Sergiu Hart & Andreu Mas-Colell, 2013. "A Simple Adaptive Procedure Leading To Correlated Equilibrium," World Scientific Book Chapters, in: Simple Adaptive Strategies From Regret-Matching to Uncoupled Dynamics, chapter 2, pages 17-46, World Scientific Publishing Co. Pte. Ltd..
    4. Forges, Francoise, 1990. "Universal Mechanisms," Econometrica, Econometric Society, vol. 58(6), pages 1341-1364, November.
    5. Forges, Francoise M, 1986. "An Approach to Communication Equilibria," Econometrica, Econometric Society, vol. 54(6), pages 1375-1385, November.
    6. Dhillon, Amrita & Mertens, Jean Francois, 1996. "Perfect Correlated Equilibria," Journal of Economic Theory, Elsevier, vol. 68(2), pages 279-302, February.
    7. Sergiu Hart & David Schmeidler, 2013. "Existence Of Correlated Equilibria," World Scientific Book Chapters, in: Simple Adaptive Strategies From Regret-Matching to Uncoupled Dynamics, chapter 1, pages 3-14, World Scientific Publishing Co. Pte. Ltd..
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    More about this item

    Keywords

    Games with communication; Correlated strategies; Correlated equilibrium; 2 $$times $$ × 2 games;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • A23 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Graduate

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